Is there enough food for everyone ?
Reuters reports that Deutsche Bank’s new chief executive faces the same strategic problem that has long preoccupied its top management - whether or not to override the rainmakers and big earners at its powerful investment bank to shrink that business.
Christian Sewing’s appointment as chief executive on Sunday and the abrupt departure of his predecessor John Cryan holds out the prospect of radical change at Germany’s flagship lender, which has been slower than rivals to reform after the financial crash.
Sewing expects to complete an initial review of Deutsche’s investment bank within weeks, according to a person with knowledge of the matter, but any overhaul he launches is likely to take much longer.
“They’ve had to come around and painfully admit their investment banking baby is quite ugly,” said Octavio Marenzi, CEO of consultancy Opimas. “That’s an emotional issue for them.”
The debate over the investment bank’s future heated up over the past two weeks as Deutsche Bank Chairman Paul Achleitner intensified a search for a CEO to replace Cryan, the Briton he had installed less than three years ago to clean up the bank.
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