Wall Street's messiest bank could cut bonuses by nearly one third

It looks like Deutsche Bank could cut bonuses by 500 million euros ($US566 million) this year.

That’s according to Bloomberg’s Ambereen Choudhury and Nicholas Comfort, who report the cost-cutting, which could amount to one third of last year’s bonus pool, will likely target fixed-income traders.

The news follows a rough period for banks across the Street in terms of fixed income trading.

Expecting a third-quarter loss of 6.2 billion euros ($US7 billion), Deutsche Bank announced a massive write-down in early October.

In June, the bank’s board purged its leadership and appointed a new CEO, John Cryan.

Then, on Sunday, the bank announced a dramatic structural overhaul.

Among other things, the bank will replace the corporate banking and securities division with two units: corporate and investment banking and global markets.

A number of executives who were close with ex-CEO Anshu Jain will also leave the bank.

And now, it looks like the bonus pool is next to take a hit.

Last year, Deutsche Bank paid out 2.71 billion euros in bonuses, down from 2013’s 3.16 billion euros, according to Bloomberg.

Final decisions on bonuses will be made in a couple of months.

Here‘s the Bloomberg article.

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