Professor Brian Scott-Quinn, director of Banking Programmes at Henley Business School, suggests Deutsche Bank is trapped in a ‘spiral of decline’.
Scott-Quinn says that Deutsche should accept that the game is up.
“We really no longer need Deutsche Bank. There are already plenty of retail banks in Germany to provide competition and a good service to consumers. In investment banking it is the same as there are still good European investment banks which can provide a good service to German industry. It is almost impossible now to recover from years of mismanagement. At the same time, to attract the people they still need, they have to pay more than others where bonus prospects are much better. It is a spiral of decline and it started perhaps 20 years ago, even before the financial crisis. “Barclays, along with other European banks, are perfectly capable of meeting the needs of German industry for corporate and investment banking services. Deutsche might be better acknowledging that its days as a global champion and as a German regional champion are over and that sometimes banks reach the end of their lives.”
“We really no longer need Deutsche Bank. There are already plenty of retail banks in Germany to provide competition and a good service to consumers. In investment banking it is the same as there are still good European investment banks which can provide a good service to German industry.
It is almost impossible now to recover from years of mismanagement. At the same time, to attract the people they still need, they have to pay more than others where bonus prospects are much better. It is a spiral of decline and it started perhaps 20 years ago, even before the financial crisis.
“Barclays, along with other European banks, are perfectly capable of meeting the needs of German industry for corporate and investment banking services. Deutsche might be better acknowledging that its days as a global champion and as a German regional champion are over and that sometimes banks reach the end of their lives.”
It wouldn’t be easy to send Deutsche Bank shuffling off into retirement, of course. Apart from anything else, it has a famously huge exposure to derivative contracts — estimated at €46 trillion in 2016 (the potential losses on the portfolio would be rather lower).
For more read the full of article at The Guardian
