This morning Deutsche Bank announced that it would lay off 1,900 employees — 1,500 in investment banking — after a dismal earnings report.
Overall, earnings slumped 46%, and it’s got to be feeling dismal to be a shareholder. Check out the last line of Deutsche Bank’s Income statement (below), the net attributable income to shareholders, below.
In the last three month’s the number’s declined by almost half to 650 million euros.
Last week Meredith Whitney was on CNBC, and she said that banks were going to be forced to downsize as shareholders became increasingly angry at dismal returns. Deutsche Bank’s layoffs show that banks are going to have to scramble for cash anywhere they can find it to make balance sheets healthier amid the global economy’s current macro environment.
The question is, what will Wall Street have to do to brighten up income statements like this one?