Anshu Jain had lost the confidence of the investment banking staff who were supposed to be his biggest fans. So says the Wall Street Journal, which yesterday reported the unexpected resignations of Deutsche Bank co-CEOs Anshu Jain and Jürgen Fitschen.
Jain is quitting Deutsche on June 30th. Fitschen will quit next year. Both men had been due to stay until 2017, and just two weeks ago Jain was handed sole responsibility for implementing Deutsche Bank’s new strategy. Bloomberg reports that neither man will be paid anything more by Deutsche Bank, which we deduce has grown sick of them both.
Investment banking professionals at Deutsche might be expected to feel apprehensive at Jain’s sudden departure. However, the WSJ says many were fed up with Jain’s “no strategy strategy” and that Jain failed to inspire at a recent investment bank town hall, where he complained about being under fire personally from senior management.
Unlike Anshu Jain, Deutsche’s all new CEO John Cryan is not a trader by trade. Instead, Cryan heralds from the advisory side of the business. A Cambridge University graduate and former accountant from Arthur Anderson, Cryan joined UBS Warburg in 1987 and specialized in ‘providing strategic and financial advice to a wide range of companies in the financial services sector globally.’ He became CFO of UBS in September 2008 and, interestingly (and perhaps reassuringly) for Deutsche’s fixed income professionals, presided over the addition of 350 people to UBS’s fixed income sales and trading business in a 12 month period. Cryan left UBS in 2011 and many of those hires were subsequently let go when UBS announced that it was culling its fixed income business in 2012.
The big question is whether Cryan will reverse the vague strategy plans outlined by Jain last week and last month. Reuters suggests he won’t: it cites a senior Deutsche insider who says Cryan was ‘heavily involved’ in formulating Deutsche’s new strategy and is unlikely to make significant changes, but may tinker with details.
Separately, Business Insider has unearthed another person who got into Goldman Sachs against all odds. The latest anomaly hustled his way into a summer internship Goldman Sachs in the first year at university by pretending he was in the second year of university. Ultimately, he turned Goldman down for a hedge fund internship which he landed after emailing 200 university alumni. Never give up etc, etc.
Mr. Jain intends to formally resign at the end of June and stay on as a consultant. (WSJ)
John Cryan, “was aggressive in cleaning up the investment bank at UBS after the crisis and he held back [then-chief executive] Oswald Grübel when he was building up that business.” (Financial Times)
John Cryan is known for being perpetually good humoured and meticulously polite. (Financial Times)
Mr Cryan speaks good German. (Financial Times)
Deutsche Bank is backed into a corner. Its retail operations are grounded in low-profit Germany. Its wealth management operation is in no position to compete with the Swiss. Investment banking, and indeed investment banking with an emphasis on trading, is its only card worth playing. (Financial Times)
Anshu Jain’s career: a timeline. (Bloomberg)
39% of shareholders voted against Jain and Fitschen at the recent shareholder meeting. “He was really upset, I mean, really upset.” (Reuters)
Brady Dougan says he’ll be available for consulting when he leaves Credit Suisse. (WSJ)
HSBC growing its UK investment banking team. It just hired Andrew Owens from Barclays as an MD. (Financial News)
HSBC pays 40% of the British banking levy single handedly. (Sunday Times)
Do you need an MBA to move up in private equity? (Poetsandquants)