FRANKFURT (Reuters) - Deutsche Bank denied a report that it plans to cut thousands of jobs. "There are no such plans," a spokesman for Germany's biggest lender said on Friday. German weekly magazine Der Spiegel earlier reported that about 15 percent of the bank's 35,000 jobs could be cut in the areas of infrastructure and regional management. In February the bank reported a quarterly loss of 351 million euros ($463 million) after packing in 1.2 billion euros worth of one-off charges into the fourth quarter. (Reporting by Edward Taylor; Editing by Mike Nesbit)
Update: In an emailed statement, the German finance ministry told Bloomberg that the report on Deutsche Bank by German weekly Die Zeit “is incorrect" adding that "the federal government isn’t preparing any rescue plans. There are no grounds for such speculation.”
Trading in credit default swaps – derivatives which protect against a default on Deutsche’s debts – hit a six-month high amid reports that Angela Merkel’s government is plotting emergency aid for the bank, reports The Telegraph.
The cost of insuring the bank’s sub-ordinated bonds has jumped to a record high, as trading in its CDSs rose by more than 60pc as investor nervousness heightened.
John Lounsbury submits:According to Tracy Alloway at FT.com, an "unusually explicit" statement by Deutsche Bank (DB) has denied that it knows of any SEC (Securities and Exchange Commission) actions for potential charges of the sort that led to a