Deutsche Bank merger talks heighten uncertainty for US staff

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Deutsche Bank AG's merger talks with Commerzbank AG has put its 10,000 U.S. workers on edge, three employees told Reuters, with some concerned a ...

REUTERS: Deutsche Bank AG's merger talks with Commerzbank AG has put its 10,000 U.S. workers on edge, three employees told Reuters, with some concerned a deal could pressure Deutsche to further shrink or even dispose of its U.S. businesses.

"We don't know what's going on. Everything is up in the air," said one senior employee within the bank's U.S. equity sales business, who asked not to be named because of the sensitivity of the matter. Deutsche Bank's U.S. business has brought in around half of revenue for its overall investment banking unit, which includes corporate and investment banking as well as trading, even though it came with a relatively high cost of capital.However, encumbered by litigation and regulatory investigations into past misconduct, the business has struggled to compete with Wall Street rivals.

Commerzbank, which is focused on personal and commercial lending, typically pays its staff less than Deutsche Bank. If the German government were to retain a stake in a combined entity, lawmakers would likely argue that it should keep a tight rein on pay.

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