Loss making Deutsche Bank changes CEO to change image

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Deutsche Bank and Banco Santander's U.S. unit were the main two of 33 banks to fall flat the test to perceive how they would perform in a money-related emergency. The German weekly Die Zeit called for it to merge with Commerzbank "in the interests of bank and country".

Deutsche Bank has expelled its British-conceived CEO John Cryan in the midst of proceeded with misfortunes at Germany's greatest loan specialist.

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"The Supervisory Board is convinced that he and his team will be able to successfully lead Deutsche Bank into a new era", Achleitner said.

Schenck had signaled he was looking for opportunities outside the bank.

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He told staff in a letter published on the bank's website that he would thoroughly analyse how Deutsche wants to position its investment bank in a hard market environment. However, the long-term turnaround of the bank will likely take several quarters, if not years, to fix. "With regard to our revenues we have to regain our hunger for business". "And at the same time we will look to free up capacity for growth by pulling back from those areas where we are not sufficiently profitable".

Hans-Christoph Hirt, director of the Hermes Group which represents influential shareholders of Deutsche Bank, pointed out that the appointment of Sewing was already the "sixth change of CEO" during Achleitner's six-year term as board chairman. In practice, that suggests eliminating some businesses with staff reductions and spending cuts. Sewing needs to rejuvenate the bank's cost-cutting plan, which means reducing its USA operations "to free up capital, cost and reduce leverage exposure, improving ROE". The bank, based in Frankfurt, is one of the last European banks with a prominent outpost on Wall Street, but has struggled to keep up with its American rivals even as they have come back stronger than ever. "He has also overseen a number of strategic U-turns, not least regarding the bank's retail business and asset management". "It feels like there isn't really a plan".

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Incoming chief executive Sewing has been a member of the management board since January 2015 and president since March 2017. The investment banking giant racked up a third consecutive loss in 2017 but would have returned to a profit were it not for a one-off €1.4bn (£1.2bn) charge from Donald Trump's tax reforms. "He should carry the responsibility for that and leave", though that probably won't happen, he said by email. "I don't believe it will happen, but that's what I'd prefer".