German Economy Online: Resignation of Jain: No new deal for German Bank

Sunday, June 7, 2015

Resignation of Jain: No new deal for German Bank – SPIEGEL ONLINE

Anshu Jain is gone. Finally. For too long, the German bank has held fast to the man who stood for the old system: for quick trading business, which has the Bank up to the financial crisis introduced billion-profits -and since then billions of penalties. It may be that Jain had learned from the mistakes of the past. That he wanted to bring the bank as head of a better way. But part of a new beginning, first of all dealing with the past. And for Jain simply lacked credibility. Is now so all is well at Deutsche Bank? Unfortunately, this is unlikely. Because it is far more amiss than can be solved by a change of boss.

For Jains successor John Cryan says that he charged much less goes into the job. Him hanging on no scandals. And the Supervisory Board of Deutsche Bank, he sits only since 2013. Just short enough to avoid being associated with the failures of leadership.

But that was already with the new beginning at Deutsche Bank. Jain is exchanged Cryan – British Zahlmann against British Zahlmann. And Co-CEO Juergen Fitschen occurs as Frankfurt Anstandswauwau already from 2016 take place until 2017.

The true center of power, however, remains preserved. And that is Paul Achleitner. The supervisory board chairman and former investment banker has the rate of the bank in the past three years probably more marked than the two CEOs Fitschen and Jain. He was the one who ordered the two a new strategy. And the still clung to Jain, as its image was tarnished over a long time.

Also the messed leadership change comes on Achleitner account. One has to imagine the times: As Jain and Fitschen present after months of debate on the future of the bank end of April a new strategy for the next five years – and not six weeks later announce their resignation. In between are still the departure of probably the best successor candidates Rainer Neske and a turbulent Annual General Meeting, whose embarrassment one might Jain and Fitschen better saves.

So far, all this has not scratched Achleitner Image. The failures of the Bank will hardly be credited to him in spite of his active role.

But that could soon change. Achleitner has brought with Cryan a man at the head of which he himself has chosen. Cryan is to implement the strategy, just as those who have proclaimed the outgoing boss. At least now it is Achleitner strategy. The planned sale of Postbank, it is therefore probably just give as the drastic cuts in retail banking. Since anger is programmed with the employee representatives

But that’s not all:. Investors want to finally see fewer scandals and again higher returns (see graph). And the German public wants a bank, for whose name no one should be ashamed. Should go wrong again, even Achleitner will no longer get away with it.