Leaving town? Schiller would not approve

Deutsche Bank has denounced as "pure fantasy" a report that it might move its headquarters away from its German home.

The Sunday Times had reported that the bank was exploring strategies for moving abroad - possibly to Switzerland, the UK or the US - to escape Germany's old-fashioned business culture.

The bank's particular complaint, the newspaper said, was Germany's rigid labour laws, which make hiring and firing cumbersome and expensive.

The newspaper quoted an unnamed Deutsche Bank executive as comparing life in Germany to having a block of cement attached to one's foot.

But the bank, which has an extensive branch network throughout Germany, as well as many overseas affiliates, flatly denied any such plans.

Ins and outs

Moving domicile away from Germany would do little to shift Deutsche Bank's personnel workload, since its branch employees would remain at home.

It may be able to claim some tax advantages by locating elsewhere, but would have to weigh that against the political costs associated with quitting Germany,

Deutsche Bank, by far the biggest bank in the country, enjoys close ties to the state, and is intimately woven into the fabric of German business through a myriad of corporate shareholdings.

By some measures, however, Deutsche Bank is already less German than its name may suggest.

More than half its staff now work overseas, and its centre of gravity is more inclined towards London, where much of its investment banking activity is carried out.