Shares in Deutsche Bank have jumped just one day after the German banking giant’s two Chief Executive Officer’s resigned.
Anshu Jain and Jürgen Fitschen stepped down on Sunday after an emergency meeting of the bank’s board in Frankfurt, however Fitschen will remain in his position until May next year.
Jain will be replaced by Briton,John Cryan, who will become the sole CEO in 2016. The bank said the reason for this gradual change was to ensure a smooth transition.
“Deutsche Bank has not had the best reputation over the past three years. It’s been known as the bank racked by scandals. That image needs to change. It’s the same as politics: new brooms sweep clean. They want a clean slate, get rid of the problems that they have and they’re aware that new people are going to have a fresh start. They’re won’t be two CEOs anymore. It doesn’t work well in the long run. There’s an old proverb that claims on every ship with steam and sails, there is only one man in charge. And that’s Mr. Cryan.”
Deutsche Bank presented a radical shake-up last month in an attempt to restore confidence in its management, but several investors demanded more changes.
“Deutsche Bank doesn’t have a German CEO. That would be impossible in France. There is no way that somebody from outside France could be the boss of a large French bank. Here in Germany, we’re more globally oriented. The new CEO is an investment banker, which means that Deutsche Bank will remain an investment bank.”
Deutsche Bank has struggled to restore an image tarnished by a number of regulatory and legal problems which include probes into alleged manipulation of benchmark interest rates, mis-selling of derivatives, tax evasion and money laundering.