German Bank: How much investment bank’ll it be? – Times Online

Even without Anshu Jain, the German bank nor problems. Your crisis shows how underdeveloped is the German capital market.

June 8, 2015 19:42 clock

The headquarters of Deutsche Bank in Frankfurt am Main | © Boris Roessler / dpa

Anshu Jain is gone, but the problems of Deutsche Bank is not long. The investment banker had to vacate his seat as co-chief, because the bank had fallen into the next under his leadership of a scandal, so will be happy to reports. The $ 2.5 billion fine for Libor manipulation have finally brought the camel’s back

The scandals and fines -. The Libor-payment will not be the last – are undoubtedly bad for the image of the Bank. And no shareholder will see his company constantly in the headlines. But they are not the cause of the dissatisfaction of the large shareholders. Finally, in the majority of international investors, including the largest single shareholder of the New York asset manager BlackRock and the Investment Fund of the Emir of Qatar, while not condone these actions, but where it ultimately matters is for rising yields and rising stock prices.

Failed Jain is ultimately the fact that the German bank to this day does not know what she wants to be. Or can be. One can also say, the investment banker Jain swiftly goes on the underdeveloped financial market Germany.

Still time not so long ago was the bank the core of Germany AG, in the middle of a participation braid German industrial concerns. But the structure was increasingly politically undesirable, and the Frankfurt banker also lured the American capital market. With the nine billion dollar acquisition of Bankers Trust in 1999 Rolf Ernst Breuer wanted to give the people of Frankfurt a place at the table of Wall Street.

Bankers Trust was to have, because the bank was weakened by a scandal derivatives. (To this day, Wall Street veterans attribute the fact that the German bank is involved in so many scandals, to Bankers Trust. “This is in the DNA until today there,” blasphemes an insider.) But the German bank takes back a place in the rankings of the US investment banks.

This was not least the success of Anshu Jain, who did not start his career in London, but in New York. His vision was a “Goldman Sachs Europe” was, as the Financial Times put it. The German bank would not know how. In the original Germany AG, bind over the investments German companies per se, but by business connections Jain saw an opportunity to profit as an investment bank on the side of German exporters.

However, the market for investment banking in Germany is very limited. As before, the German capital market is based on the bank system. The companies finance themselves – unlike, say, in the US – almost directly in the capital markets, but through their bank. The stock market does not play a role in the financing of young companies. While there are now more companies, the corporate bonds instead of bank loans take issue. But the volume is compared to the American market, where the rivals of Deutsche Bank are at home, small.

So the German economy is more dependent on banks than about the economy in the United States in many areas where the company go directly to the capital market. This applies especially to the so important for Germany’s labor market medium-sized companies. In contrast, the major German corporations move long on the capital markets in New York and London.