Belfast Telegraph

Deutsche Bank announces global hiring freeze

Deutsche Bank is introducing a global hiring freeze as it attempts to negotiate a multi-billion dollar fine levied by US authorities.

It follows announcements made by the German lender last year which said it would slash 9,000 jobs by 2020 as part of a global efficiency drive.

The global hiring freeze will cover the bank's UK operations. Deutsche Bank currently employs around 9,000 people across the country, 7,000 of which are based in London.

The hiring freeze will not affect control functions, which includes compliance staff. A spokesperson for Deutsche Bank declined to comment.

The bank's cost-cutting measures could help build up investor confidence as the German lender battles a multi-billion dollar US fine.

Deutsche Bank has met with Department of Justice (DoJ) officials in a bid to renegotiate a 14 billion US dollar (£10.5 billion) settlement deal following a probe into the German lender's sale of mortgage-backed securities during the financial crisis.

Some fear a pending settlement with US authorities could deplete the bank's finances.

Those worries sent Deutsche shares into a tailspin last month to hit fresh 20-year lows on the back of liquidity concerns.

In a note released last week, S&P Global Ratings maintained its negative outlook for Deutsche Bank, saying that the German lender will likely have to pay more than it has accounted for, but should be able to absorb the costs.

The ratings agency projects that aggregate litigation charges will exceed the 5.5 billion euro (£4.9 billion) provisions and the 1.7 billion euro (£1.5 billion) contingent liability that the bank reported at the end of June.