Allianz has created a new division for the corporate and investment banking activities of Dresdner Bank and will focus its activities on Europe, in a U-turn which could threaten hundreds of jobs at the firm.

Dresdner Bank has confirmed that it will integrate corporate and investment banking into the wider Allianz group in a new division called Corporates and Markets. Plans to create a separate unit for Dresdner KW and float it off have been dropped.