Date: 06/08/2015 01:39 clock
trouble with the law, the overseers and the shareholders – there are many reasons for the withdrawal of German bank chiefs. The most important thing: Jain and Fitschen believed they could after the crisis go on as before. A fallacy.
majority is the majority. It says in the policy. The world of business works by different rules. As the Management Board of Deutsche Bank were approved at the general meeting two weeks ago by 61 percent of shareholders – because it was not about a vote of confidence. But the exact opposite. Because could not get that 39 percent of the capital, had spoken out against the leadership. Ever since that day, the two co-chiefs Anshu Jain and Jürgen Fitschen were considered for the count. That they now throw in the towel, so is only fairly surprising.
It was also quite come together in the last few months. First, the multi-billion dollar record fine due to the manipulation of the interest rate Libor. The hanky-panky as such are indeed back years. And they found exactly held in that department, the shelter Jain before he moved to the top of the bank. Secondly, the German Bank proceedings before the Munich District Court, in which Fitschen has to answer for attempted process fraud. It’s quite possible that the manager is ultimately acquitted. A load presented the case but either way constitute And thirdly. In the sale of Postbank culminating strategy change. He should be the liberation. Instead, the stock since the date on which the reorganization was announced, again fell by around ten percent.
Reasons for withdrawal were thus enough. The real cause, however, is not to look in the past few months. But in the “business as usual” policy, the Jain and Fitschen prescribed the money home as soon as the business took over from predecessor Josef Ackermann.
The grand delusion of Deutsche Bank
Looking back: In the Frankfurt twin towers being dragged since the financial crisis a kind of living lie around with you. It reads that the German Bank – unlike the rest of the industry – precisely those crisis have survived. The self-deception began with the false claim that the bank had claimed no government assistance during the difficult years. They culminated in the assessment Ackermann, he leave his followers a well-ordered house.
The house, which inherited Jain and Fitschen mid-2012, was one, might perhaps shimmer whose facade whose walls were already rotten however. However, the new management division, the renovations. But left it with a mere painting: The once proclaimed by Ackermann, obscene seeming return target of 25 per cent has been fixed at 15 per cent. In addition, the new management called a “cultural shift” from. Otherwise, little changed.
central bankers? Then maybe an Investment Banker
How it would have gone instead, for example, shows the Swiss UBS, the main rival of Deutsche Bank in Continental Europe. The Confederates drove their risky investment banking after the crisis down drastically. Instead, they are now focusing on the management of large assets, although a boring but steady business. Significantly: Saying at UBS has since 2012, the former Federal Reserve Chairman Axel Weber – a former central banker so. Weber was then called Ackermann’s successor at Deutsche Bank in conversation. But decided to Jain – a former investment banker.
The calculation of the duo Jain / Fitschen went something like this: When withdraw competitors such as UBS or the London-based Royal Bank of Scotland’s investment banking, it is for the German bank sooner or later pay off when it holds itself to it. That sounded plausible. However underestimated Jain and Fitschen colossal with which rigidity now difficult to make the supervisory authorities the investment bankers life
An example. <- - Info box!>: The German bank was before the crisis specializes to conduct their business with a minimum own capital. By this trick, the profits could “leverage”. Meanwhile the guards but require significantly more capital – which reduces the profits and, moreover, that caused the German bank had to borrow money from its shareholders last twice to fresh money
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Significant one can not miss its goals
“Strategy 2015+” – so the objectives were overridden, the Anshu Jain and Jürgen Fitschen announced at their first joint news conference. The yield requirement was: at least 12 percent. A few have been 3.1 percent. The profit target for the mass customer business was: EUR 3.0 billion. It became: 1.4 billion euros. The costs brief was: less than 65 percent in relation to income. It became 84 percent. Clearly one can hardly miss its goals
While Jains resignation already applies as of June 30, Jürgen Fitschen wants one more year stay in office -. And as it were incorporated the successor, a Brit named John Cryan. He used to be chief financial officer of a UBS division, responsible for the European operations later the Singapore sovereign wealth fund Temasek and belongs since 2013 already on the board of Deutsche Bank. Otherwise, you know he really only one thing – he takes no well-ordered house
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