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                                                           EXHIBIT 10(iii)(A)(1)

Bankers Trust Company
130 Liberty Street, New York, New York 10006


Mark Bieler                                 Mailing Address:
Director of Human Resources                 P.O. Box 318, Church Street Station
Tel: 212-250-9680                           New York, New York 10008
Fax: 212-250-7808

                                                              September 21, 1995

Mr. Frank N. Newman
3030 K Street
Apt. 113
Washington, D. C. 20007

Dear Frank,

On behalf of the Board of Directors of Bankers Trust, Charlie Sanford and Gene
Shanks, it gives me great pleasure to extend to you the following offer of
employment.

Your title will be Senior Vice Chairman and you will be a Director of both the
Holding Company and the Bank. In this capacity, you will be the third ranking
officer in the Firm.

As Senior Vice Chairman you will be responsible for the Chief Financial and
Administrative Officer functions which include Finance, Administration,
Corporate Tax, Real Estate Management, Investor Relations, Corporate Affairs,
Audit, Legal, Compliance and Control, Human Resources and Corporate Technology.

Upon the retirement of the Chairman you will become the second ranking officer
in the Firm, with appropriate line business responsibilities added to your role
as determined by the then Chairman.

Your minimum annual salary will be $500,000, paid monthly.

For the years 1995-1997 you will also receive the following:

         1995 - A $500,000 payment on your start date (less mandatory
         deductions) and 100,000 stock options granted on your start date.
         50,000 will vest on your first anniversary and the other 50,000 on your
         second anniversary. The price of the option will be the average of the
         high and low trading prices on the date of the award,

         10,000 shares of stock will be awarded under the Partnership Equity
         Plan (PEP) to you on December 29, 1995, and


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Mr. Frank N. Newman                                           September 21, 1995


         You will be eligible for the ADCAP Plan on your start date and $100,000
         will be credited to your account on December 29, 1995. This Plan is in
         lieu of any Section 415 excess pension plan.

         1996 - A minimum guaranteed bonus of $2,000,000 (less mandatory
         deductions), $1,500,000 of which will be paid in cash in early January
         and the balance paid in December.

         50,000 stock options which are usually awarded in June.

         60,000 PEP units.

         1997 - A minimum guaranteed bonus of $2,500,000 (less mandatory
         deductions) paid in December.

         50,000 stock options which are usually awarded in June.

         60,000 PEP units.

The 1997 bonus (and, to the extent possible consistent with the above, the 1996
bonus) will be paid in accordance with the terms of the Equity Participation
Plan which means each will be paid approximately 70% in cash and 30% in equity.

The Firm will provide you with a car and driver. You will be responsible for any
personal income tax resulting from the related imputed income under tax rules.

All of your interests in BT's compensation plans (e.g., Guaranteed Bonuses, PEP,
Stock Options, EPS Shares and ADCAP) will be protected in the event of a Change
of Control. In brief, all deferred compensation paid or awarded to you will vest
to the extent unvested and be immediately paid out upon a Change of Control
triggering occurrence. Your Change of Control rights are included in all awarded
agreements you receive. A complete description of Change of Control triggering
events and related terms are provided in Section 5 of the Bankers Trust New York
Corporation 1994 Stock Option and Stock Award Plan (attached).

You will receive relocation assistance as follows:

         -    Temporary living accommodations for one year.

         -    Movement of household goods (the Bank will arrange for the
              shipment of your household affects).


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Mr. Frank N. Newman                                          September 21, 1995


        -     Usual and customary closing costs on the sale of your existing
              home and usual and customary costs on the acquisition of a primary
              residence in the NY area including 2 points on purchase.

        -     Lump sum of $10,000 (net of taxes) relocation allowance for
              miscellaneous relocation expenses. 

        -     Payment of an amount which on an after-tax basis will be
              sufficient to cover any tax liability on the above relocation
              benefits.

        -     If you elect, you will be eligible for a home-buyout of your
              existing residence based on the average of two independent
              appraisals.

Our offer is contingent upon your completing the enclosed employment package.
The package includes an employment application, a security data sheet, a
personal information form, and confirmation of employment authorization (which
includes completing the Immigration and Naturalization Services Form I-9). You
will also have to read and sign a Substance Abuse Policy Employee Acknowledgment
Form which is enclosed in the envelope marked "Medical Evaluation." In addition,
it will be necessary for you to successfully complete a medical evaluation,
background investigation, including but not limited to a credit investigation,
and all other components of the Bank's pre-employment screening process to the
Bank's satisfaction.

You may schedule an appointment for your medical evaluation either at our office
at BT Plaza or if you wish in Washington, D.C. by calling me. Please complete
and bring the forms in the envelope marked "Medical Evaluation" to your
appointment. You will be eligible to start employment once you have received
notification of the successful completion of your medical evaluation and credit
investigation which we estimate will take 48 hours.

The Corporation recently reviewed its policies and procedures as they relate to
the handling of information of a proprietary or confidential nature. Included in
this policy is a requirement that all employee and related accounts be
maintained in designated accounts from Brokerage firms approved by Bankers
Trust; currently, BT Brokerage, NatWest Investor Corporation and Smith Barney
Inc. Additional information pertaining to this policy can be found in the
enclosed booklet entitled "Confidential Information, Insider Trading and Related
Matters."


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Mr. Frank N. Newman                                           September 21, 1995


You will be entitled to receive all compensation and benefits specified in this
letter unless your employment is terminated prior to 12/31/97 for gross
misconduct.

Needless to say we all are very enthusiastic at the prospect of your joining
Bankers Trust. Please call me if you have any questions regarding our offer.

                                 Sincerely,


                                 /s/MARK BIELER
                                 ---------------------------
                                 Mark Bieler
                                 Director of Human Resources

                                 September 21, 1995

Agreed to

/s/FRANK N. NEWMAN
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Frank N. Newman

September 21, 1995



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