Deutsche Bank Management Said To Face Questions From Board

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Deutsche Bank's directors will question the management board over claims the lender failed to recognise billions of dolars in unrealised losses during the financial crisis, two sources said.

Reuters reports that the supervisory board, which has 20 independent directors 'is seeking answers from management', a person familiar with the body said on Friday.

Deutsche Bank has rejected the claims, which resurfaced this week, as unfounded.

The risk committee on the board of directors is set to discuss the matter when it holds a regular meeting before Christmas, another source close to the bank said.

In the meantime, Bloomberg reports that Deutsche Bank has reduced employees in its Brazilian investment bank and research units as part of a global effort to save $5.8bn by 2015.

Deutsche Bank is cutting its workforce in Latin America’s largest country to 'seek improvement of its operational excellence', the Frankfurt-based lender said Friday in an e-mailed statement. The bank, which has about 400 employees in Brazil, including workers from outsourcing services, didn’t say how many people were fired.

Finally, Bloomberg also reports that Deutsche has stopped equity coverage on 11 out of 27 Japanese industries, the brokerage said in a note to clients Friday, citing 'organizational changes'.

According to the note obtained by Bloomberg News, coverage has been suspended for the following sectors: communications, precision machinery, health care, information technology services, semiconductors, food, toiletries, trading houses, oil, chemicals and textiles.

'It’s a sign of the times', said Shane Oliver, Sydney-based head of strategy at AMP Capital Investors, which has about $130bn in assets under management. 'The Japanese share market has had problems for the last 20 years, so it’s not very surprising. With the trading volumes so low, it’s hard for brokerages to support keeping people on'.

Deutsche Bank directors to question board - sources

Deutsche Bank Reduces Investment Bank, Research Teams in Brazil

Deutsche Halts Almost Half Its Japanese Equities Coverage

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