The Times reports that Commerzbank moved quickly and axed 10 proprietary traders earlier this week, following the announcement that the bank was scaling back on its investment banking activities. Trouble is, so it is said, their positions had not been completely unwound and the traders were subsequently recalled to sort out the situation.
The newspaper describes the premature sackings as 'bungled' and this episode will no doubt give further ammunition to those wags who, perhaps unfairly, have come to refer to the German institution as 'Comedybank'.
Rival newspaper The Guardian now reports that six heads of department left the investment banking division Thursday. The key departures are said to be the head of derivatives, head of equity derivatives trading, head of securities finance, head of infrastructure, head of convertible bonds and head of risk.
Other bankers, analysts and traders are thought to have already been asked to clear their desks.
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