Deutsche Bank Layoffs Amid Economic Uncertainty : (Page 2)
August 6, 2012With its international effects, Deutsche Bank’s downsizing hints at the dangers of a broader collapse in the European financial sector. While uncertainty may damage investment prospects and transatlantic employment to a limited extent, a meltdown resulting from the collapse of an interconnected European banking system would have tremendous ramifications in the real economy of Europe and the United States. As Deutsche Bank sheds 1,500 investment jobs, American policymakers will be forced to keep in mind the dangers posed to them by the European crisis. Moreover, they will be forced to wait anxiously as their European counterparts slowly develop a politically palatable series of solutions. While a defense of investment banking may be unpopular, its struggles are also not cause for optimism. The experience of Deutsche Bank should remind policymakers of the global economic networks placed at risk by prolonged uncertainty.

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