Tuesday, December 29, 2015

Deutsche Bank: 2016: To restoring a Brand ...

Achtung! The slippage in Brand Value of a 146 year old bank ...
  • 2015 was a year of retreat of the German bank's  brand.  The brand value clearly suffered:
  •  with  fines in billions imposed by banking regulators in several jurisdictions ;
  • there were allegations  that the bank had manipulated key market rates including Libor;
  • maneuvered  currency and government bond markets; that the bank had moved funds to  countries under sanctions;
  • the bank's employees had possibly indulged in  fraudulent collaboration;   
  • its officers may have “repeatedly misled” the regulators .  
A Passion to Re-perform - to rebuild   
  • So Deutsche Bank  changed its senior managers;
  • brought in John Cryan as co-Chief Executive Officer of Deutsche Bank for a new tryst with destiny.
  • Deutsche has adopted divestment as a turnaround strategy and went public with this strategy;
  • it withdrew from the two largest economies:  USA and China (Close on the heels of the retreat from USA investments where it sold to Raymond James of Florida, Deutsche is now reportedly selling its 20 percent share in Hua Xia Bank for $ 4 billion. to Property and Casualty Company ltd);
 It seems to be  attempting to rebuild brand through
  • Leveraging down the price pillar; price is a function of cost, so Deutsche has to have a revolving door for staff ring out old; ring in new. A more cost efficient resources utilization. 
  • Leveraging up Quality.  The Deutsche team must be trained and prepared to manifest professionalism and ethical conduct toward regulators and customers.
  •  Leverage up Support   Increase the level of capital support  
  • Leveraging down   Availability : Divesting out of areas to areas with potential opportunity beyond the existing market and exploit it. 

This blog recommends no investment. Views expressed are without any risk or responsibility. 

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