By Jonathan Marino, Senior Writer, Business Insider: Deutsche Bank has a new CEO taking over — John Cyran. Cyran’s predecessors, a pair of co-CEOs named Anshu Jain and Juergen Fitschen, resigned over the weekend. Many in the banking community say they saw the firing coming as early as March, when it was announced that Deutsche Bank had failed the US regulatory procedure broadly referred to as a stress test.
Failing the stress test wasn’t the only reason Jain and Fitschen are out. Deutsche Bank has lagged bigger US firms like competitors JPMorgan and Goldman Sachs, in market gains post-crisis. The pair also failed to address cultural issues that have hobbled the German bank for years. Business Insider spoke with banking sector pros about the surprise move at Deutsche Bank.
A recent scandal played no role. No one on Wall Street thinks the $2.5 billion fine that Deutsche Bank was hit with in connection with its role in the LIBOR trading scandal was a tipping point for co-CEOs Jain and Fitschen. “It might have been one of the bullets,” Ryan Mendy, COO of research firm Edge Consulting Group. “LIBOR as a single element isn’t the straw that broke the camel’s back.”
Jan and Fitschen’s plans will go forward. Many on Wall Street expect the bank to move forward with some version of the restructuring plan Jain and Fitschen revealed earlier this year. “One way or another, Deutsche Bank is going to do that restructuring,” one banking pro said.
How they blew the test? Is the test fair?