Alan Greenspan, the former chairman of the Federal Reserve, has joined Deutsche Bank as a consultant to its investment bankers and their clients.

The German bank had signed up the former central banker to offer its investment banking clients access to his strategic thinking, said Josef Ackermann, chief executive.

"Mr 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," said Mr Ackermann.

Deutsche Bank said Mr Greenspan (81) would probably work with investment bankers and important clients "several times per quarter" and take part in internal discussions with the bank's economists. Mr Greenspan will again work with Peter Hooper, its chief economist for the Americas.

Mr Hooper worked at the Fed for many years under Mr Greenspan and was one of the people central to recruiting the former Fed chairman.

The bank said Mr Greenspan would not get involved with asset management at Deutsche Bank to avoid a potential conflict of interest with his advisory work for Pimco, the fund manager owned by Allianz, the German insurer.

Deutsche Bank will be his only client in investment banking. Mr Greenspan, who will soon publish his memoirs, has also accepted an honorary unpaid position with the British Treasury.

Deutsche Bank would not say how much Mr Greenspan would be paid for his services.

Mr Greenspan set up his own consultancy, Greenspan Associates, after ending an 18-year career as chairman of the Federal Reserve in January last year.