The Deutsche Bank storm shows no sign of abating. What is worrying are not only the stock market vicissitudes or the difficult negotiation with the US authorities to close the case relating to the bonds guaranteed by subprime mortgages, but also the repercussions that the crisis of one of the major credit institutions in the world could have on the employment, especially in Germany.
A few hours ago yet another bad news for the employees of the banking giant. Deutsche Bank has signed an agreement with the unions that provides for the cutting of 4.000 jobs in Germany alone. Previously there was talk of 3.000 redundancies instead. Which means that within a few days, the German bank has decided to reduce the number of its employees by a further thousand.
The agreement reached with the trade unions is part of a global restructuring plan, according to which what has been called the "sick man of Europe" will have to cut 9.000 jobs worldwide.
At the same time it should be emphasized that, according to the latest rumors reported by Reuters, the German government is ready to negotiate with the US authorities to try to quickly close the mortgage case.
According to the rumors, there have already been "contacts at all levels" between Germany and the United States. A piece of news which, if confirmed, would represent a real reversal on the part of Berlin which, until now, had always denied any type of involvement in the affair.
Christine Lagarde intervened directly on the matter and, speaking to Bloomberg microphones, explained that "a plea bargain would certainly be welcome since it would bring certainty about the weight that the bank should bear", i.e. the fine that it will be called to pay. In mid-September it emerged that the US authorities had proposed a settlement for 14 billion dollars, a figure that the German bank did not accept, hoping to reach a fine similar to that paid by other credit institutions involved in similar events. Friday last AFP had triggered a rally in the stock by reporting rumors that DB could pay 'only' 5,4 billion dollars.
