In the throes of a most turbulent transformation.
High in the Deutsche Bank Towers in downtown Frankfurt, a radical plan code-named Model 5 was quickly unravelling.
Bloomberg News reports that it was April 24, and key players at the banking giant had assembled on the 35th floor. Rocked by one scandal after another, Deutsche Bank had spent months considering its options. The most extreme was Model 5: cleave the bank in two.
By 10 o’clock that Friday night, say people familiar with the deliberations, that drastic course was abandoned for Model 2, which has now become a painful grind to cut costs. The latest challenge of that strategy was confirmed Thursday: a net loss of $7.4bn for 2015, its first annual loss since 2008 - along with a warning that the hard work had only just begun.
Today Deutsche Bank is in the throes of one of the most turbulent transformations in its 145-year history. Within six weeks of the Frankfurt meeting last April, many investors had lost confidence in the bank’s co-chief executive officer, Anshu Jain, and he was gone. In his place came John Cryan, a cerebral Englishman and, to some insiders, an unlikely choice to restore Deutsche Bank to its former glory.
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