Junior bankers will still get bonuses, but not what they might normally look forward to

Deutsche Bank is to axe bonuses for senior staff as part of its desperate efforts to pay for a potential $14bn (£11.2bn) legal settlement with American regulators.

John Cryan, the German bank’s Yorkshire-born boss, warned top bankers this month that their bonuses would be seized to help foot the bill for the mis-selling of sub-prime mortgages.

A handful of top-performing executives will receive “retention cheques” — much smaller sums that will be paid out over several years. Junior staff will still receive a bonus, but on a far smaller scale.

“The fine could be partly paid for by bonuses,” said one senior insider.

Deutsche has long been one of the largest employers in the City. It has a total UK staff of about 9,000, with