Deutsche Bank To Axe 500 Jobs In Corporate Banking And Securities, Mostly Outside Of Germany (DB)

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Deutsche Bank announced today that it will eliminate 500 positions in the bank's corporate banking and securities corporate division.

Big cuts at DB have been rumored and feared for awhile now. They haven't materialized much, though some people were cut in June.

Today the German bank said in its release that the main reason for the layoffs is the uncertain economic environment stemming from the ongoing eurozone crisis.

According to Deutsche, the debt crisis has resulted in "significantly reduced volumes and revenues" from the corporate banking and securities division.

From the release:

In response to the significant and unabated slowdown in client activity, Deutsche Bank will consider additional cost controls beyond those already implemented as part of the recalibration of the Corporate & Investment Bank (CIB). This will lead to a reduction in headcount by around 500 positions in CB&S during Q4 2011 and Q1 2012, primarily outside Germany.

The bank said it still expects a profitable third quarter as well as a profitable full year for 2011.

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US Preparing To Sue Banks For Billions Over Misrepresenting Safety Of Mortgage Securities

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The New York Times scoops that the federal government is preparing to file suit against a dozen major banks in the coming days for their roles in 2008 financial crisis.

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, is alleging that the banks misrepresented the quality of mortgages bundled together as securities — billing subprime loans as secure investments.

Among the banks set to be slapped with lawsuits according to the Times are: Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank. The agency filed suit against UBS earlier this year for $900 million in damages.

Fannie and Freddie lost more than $30 billion during the financial crisis — at least in part due to the bad loans they bought.

The lawsuits are expected to be filed Friday, or else just after the holiday weekend.

Read the full New York Times report here:

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