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Business

Deutsche Bank mulls new job cuts, says report

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Business

Deutsche Bank mulls new job cuts, says report

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COMING UP:Deutsche Bank mulls new job cuts, says report

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00:00:01
>> Deutsche, Germany's biggest bank and with problems to match. A new report saying it could be thinking about another swathe of job cuts. 10,000 possibly under consideration, according to a source speaking to Reuters, 9,000 already announced a year ago. It has so far, declined to comment.>> Banks everywhere are failing to earn a return on equity above that cost of equity, which means they're actually destroying share holder value.
00:00:28
Deutsche Bank's no different, in fact it's one of the worst performers on that front. This is the problem that Deutsche Bank has, like other banks, it needs to cut costs, so it is plausible.>> Commerce Bank recently announced 10,000 redundancies as others in the sector also looked to slim down.
00:00:45
ING confirmed 7,000 jobs would be shed. Deutsche, itself, seeing its stock price tumble since news last month of a possible $14 billion US fine for selling toxic mortgage bonds.>> There's quite a lot of uncertainty there, there are a couple of other fines there as well, that are in the offing.
00:01:02
And if you're an investor, how do you get comfortable enough with that uncertainty to be ready to commit more capital, or even to stay as a shareholder? It's a difficult ask.>> It's thought high severance costs, especially in Germany, could put Deutsche off more redundancies. But Germany's political leaders will be watching elections next year making this a bad time for any decision on whether its biggest lender might need a bailout or to see record high employment figures dented by high profile staff cuts.