Deutsche's Biggest Gamble


Deutsche Bank looks to be ready to bet the bank.

That's according to a Reuters article, which reports sources that claim that key members of the bank's board are thought to be opposed to the idea of investment banking head Anshu Jain succeeding CEO Josef Ackermann, who is due to stand down in 2013.

According to the news agency, senior board members wish to take Deutsche back in the direction of being a more traditional firm, with less reliance on its higher risk investment banking division, which has generated up to 80% of the bank's revenues in recent years. Appointing Jain to become CEO, then, is seen by some key Deutsche executives as the wrong move.

The big question, of course, is how would Jain react should he be overlooked - would arguably the most valuable member on the bank's payroll up sticks and leave ?

One banker told Here Is The City: 'Either way you look at it, it's a huge gamble. Putting non-German speaker Jain in charge of a German bank (and probably basing him in Frankfurt), or passing him over and p.ssing him off. It's a difficult choice to make, although arguably easier to make if the bank genuinely wants to go back to its roots'.

In the meantime, Bloomberg reports that Macquarie Group has hired David Fass to become its CEO for Europe. Fass, 48, was previously head of European banking at Deutsche Bank.

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