“After 146 years of solidity, the bank that came unscathed through the 2008 crisis is now the focus of investors’ fears for the banking system.
The bank has turned to a 55-year-old Briton, John Cryan, to try to carve out a vision for its future and its 100,000 employees. But Cryan – taking the extraordinary step of declaring Deutsche “rock solid” – has spent the last 72 hours trying to calm concerns about its financial health after a dramatic plunge in its share price that, even after a 10% rise on Wednesday, is still down more than 30% in the first six weeks of 2016.
After announcing the bank’s first full-year loss since the 2008 crisis last month, Cryan’s bank has become the focus of anxiety about the health of the global financial system, and its woes are raising questions about Germany’s reputation as a haven of financial stability. Experts suggest that the country’s entire banking system would have to be redesigned in order to save its standard-bearer.
According to Jörg Rocholl, president of Berlin’s European school of management and technology, “there is no other country in the world in which a bank has a similarly central role as Deutsche Bank has in Germany”.”