Aug. 13 (Bloomberg) -- Deutsche Bank AG, Germany's biggest bank, said it hired former Federal Reserve Chairman Alan Greenspan as a consultant for its securities unit.

Greenspan, 81, will provide ``advice and insight'' to the company's corporate and investment banking unit and its clients, the Frankfurt-based bank said today. Its securities unit is Europe's largest by revenue.

Greenspan, who retired from the Fed in January 2006 after 18 years as chairman, is already advising Allianz SE's Pacific Investment Management Co., owner of the world's biggest bond fund. Deutsche Bank also counts former U.S. Treasury Secretary John Snow and former Senator George Mitchell among its advisers as it tries to narrow the gap with competitors in the U.S.

``Dr. Greenspan's position as one of the architects of the modern financial system gives him a unique perspective from which to help our clients make critical risk-management decisions,'' Chief Executive Officer Josef Ackermann said in a statement.

The former chairman, who guided the U.S. economy through its longest expansion, has been giving paid lectures and is also writing a book, ``The Age of Turbulence: Adventures in a New World,'' due to be released on Sept. 17 by Penguin Press.

Deutsche Bank is the second-biggest trader on the Wall Street behind Goldman Sachs Group Inc. The bank is ninth in global merger advice this year, with Goldman and Citigroup Inc. ranked as the top two advisers.

The bank's second-quarter profit rose 31 percent, beating analysts' estimates as revenue from trading surged, boosted by ``favorable market-positioning'' in credit trading as U.S. housing suffered the worst slump in 16 years.

Deutsche Bank shares rose 1.53 euros, or 1.6 percent, to 96.72 euros at 12:45 p.m. in Frankfurt, valuing the company at 51 billion euros ($70 billion). The stock has gained 13 percent over the past year.

To contact the reporter on this story: Elena Logutenkova in Frankfurt at elogutenkova@bloomberg.net

Last Updated: August 13, 2007 06:47 EDT