investment bank plans more lay offs
Dresdner Kleinwort Wasserstein (DKW), the investment banking unit
of Dresdner Bank, has announced to lay off 200 jobs. This is in
addition to 1,500 jobs from June last year. Ever since it has
integrated with the groups corporate banking business, last
July, DKW has embarked on a cost cutting exercise. The lay offs
are a part of the exercise. DKW, which at present employs 13,
500 people, plans to cut its workforce by 15% by 2003.
Dresdner Bank, which was acquired by Allianz for €24 billion
last year, revealed that it had incurred a loss of €505 million.
Last year it had recorded a profit of €1.2 billion. Lack
lustre equity markets, dwindling mergers and acquisitions, bad
provisions and mounting restructuring costs have been the major
reason for adverse result.
Dresdners net profits declined by 90% to €180 million,
dividends were cut by 20% to 70 cents.
may be investigated over bets scam
Wasserstein is likely to be questioned by the Financial Services
Authority about its involvement in the rigging of Cyprotex shares.
a pipe-fitting businessman, and a principal shareholder in Cryportex,
placed a £6 million bet with a spread-betting company City
Index that Cryprotexs shares would rise.
hedged the bet through an agreement with Dresdner, which in turn
insured itself by purchasing Cyprotex shares worth £5 million.
The purchase lead to a rise in share price above their 29p flotation
value. It has now declined to 28.5p.
The FSA is
investigating into the wager, which may have lead to manipulation
of share prices. Dresdner denied any mishandling of shares. Davidson
expressed ignorance of Dresdners participation and stated
that he had obtained legal advice. In case of any fraudulent activity
such as market rigging, the FSA has the powers to impose unlimited