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<br /> <keyword id="6357341" type="CITY" weightage="20" keywordseo="Deutsche-Bank">Deutsche Bank</keyword> is going through tough times. If a series of financial missteps, litigations and regulatory penalties at the bank, including a recent $2.5 billion fine in the Libor case weren’t enough, there is <keyword id="192219" type="POSITION" weightage="20" keywordseo="co-head">co-head</keyword> of Deutsche Bank Anshu Jain resigning followed by that of <keyword id="192086" type="POSITION" weightage="20" keywordseo="Co-CEO">co-CEO</keyword>, <keyword id="1452966" type="PERSON" weightage="20" keywordseo="Jurgen-Fitschen">Jurgen Fitschen</keyword>.<br />
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So who is Anshu Jain and why is his resignation such a big deal?<br />
 <br />
Well, for one, it’s under him that the German bank has been generating record profits. He has turned the lender into a bond trading and investment banking powerhouse, before things started falling apart in recent months, according to the Economic Times.<br />
Jain, 52, took over Deutsche Bank as co-head amid crisis in the Eurozone in June 2012. <br />
<br /> Born in Jaipur in 1963 and studied in <keyword id="2888261" type="UNKNOWN" weightage="20" keywordseo="Shri-Ram-College-of-Commerce-New-Delhi">Shri Ram College of Commerce New Delhi</keyword> and the University of Massachusetts, Jain began his career with <keyword id="6355838" type="COMPANY" weightage="20" keywordseo="New-York">New York</keyword> stock broker <keyword id="1461915" type="ORGANIZATION" weightage="20" keywordseo="Kidder-Peabody">Kidder Peabody</keyword>, before moving to investment bank <keyword id="6374847" type="CITY" weightage="20" keywordseo="Merrill-Lynch">Merrill Lynch</keyword>.<br />
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A British citizen now, Jain spent a large part of his career in London as an investment banker, and followed his mentor Edson Mitchell to Deutsche Bank in 1995. He took over as head of the treasury business in 2004. Jain showcased his capability to understand risk and make quick decisions at the investment banking division of Germany's largest bank, which over the years translated into fat profits for the bank and hefty bonuses for its 16,000-odd bankers who worked under him and known inside the bank as Anshu's army. This helped Jain become one of the highest profile bank executives in the world.<br />
<br /> When Jain was being made the co-CEO one concern raised by the bank's shareholders was that he doesn't speak German. But he awed them by speaking in German at the bank's annual general meeting in <keyword id="12970" type="COMPANY" weightage="20" keywordseo="Frankfurt">Frankfurt</keyword> in May of 2013.<br />
<br /> A nature <keyword id="2888745" type="POSITION" weightage="20" keywordseo="lover-and-keen-wildlife-photographer">lover and keen wildlife photographer</keyword>, Jain prefers carrying a rucksack. He was raised in a middle class family background and his father was a civil servant.<br />
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"Anshu is bright and at the same time very grounded. The only negative thing for him is he is not German," a banker on the conditions of anonymity told the financial daily.<br />
<br /> Like a lot of Indians, Jain is crazy about cricket. He had bought stake in <keyword id="13880" type="COMPANY" weightage="20" keywordseo="Mumbai-Indians">Mumbai Indians</keyword>, an Indian Premier League team owned by Mukesh Ambani's Reliance Group. Later he sold his stake and the transaction is under lens.<br />
<br /> The <keyword id="6357808" type="ORGANIZATION" weightage="20" keywordseo="Enforcement-Directorate">Enforcement Directorate</keyword> (ED) is probing the sale of a 10% stake sale in Mumbai Indians in 2009 to Teesta Retail Pvt Ltd, a shareholder of Indiawin Sports Pvt Ltd that owns the <keyword id="6354312" type="CITY" weightage="20" keywordseo="IPL">IPL</keyword> franchise and is part of the Reliance group.<br />
<br /> Jain is also the <keyword id="16561" type="POSITION" weightage="20" keywordseo="skipper">skipper</keyword> of Deutsche Bank's cricket team and counts <keyword id="2727" type="PERSON" weightage="20" keywordseo="Rahul-Dravid">Rahul Dravid</keyword> among his closest friends. He rarely misses an opportunity to host the Indian team when it is playing in the UK. Currently he lives in Frankfurt with his wife <keyword id="89150" type="PERSON" weightage="20" keywordseo="geetika">Geetika</keyword>, a travel writer, and two children.<br />
<br /> Many European banks are going through a crisis mainly due to tough regulatory norms. An analyst who requested not to be named said, "It is the cost of regulatory compliance which has become a big burden for the German bank. Deutsche had its share of fines and it has hit P&amp;L account. The bank needs at least two years to get back on track." It has paid over $6 billion in fines as a result of investigations into manipulations in <keyword id="37018" type="UNKNOWN" weightage="20" keywordseo="interest-rate">interest rate</keyword>, currencies.<br />
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(Image: Bloomberg)<br />

Why is Anshu Jain’s resignation from Deutsche Bank’s top job such a big deal

<p>Deutsche Bank shares are exploding after cco-CEOs Anshu Jain and Jurgen Fitschen announced that they'll be quitting over the weekend, to be replaced John Cryan.</p><p>Shares surged by nearly 8% as markets opened early Monday.</p><p>Here's how it looks:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Investing.com, Business Insider" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/557544d9dd089538068b458b-960/deutsche bank .png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span></a><p class="source"><span>Investing.com, Business Insider</span></p></div><p></p></div></div></p><p>A jump that size adds over €2.5 billion ($2.79 billion, £1.82 billion) to Deutsche Bank's market capitalisation, a pretty brutal indictment of the performance of its CEOs.</p><p>Cryan was previously CFO at Swiss investment banking giant UBS.</p><p>The move came despite the fact that Jain had recently presented a plan for structural change for the bank, with major cuts and a retreat from retail banking. According to Reuters, Jain believed that a CEO would need at least five years to make the changes, something which he either couldn't or wouldn't do.</p><p>Jain will be stepping down at the end of June, while Fitschen will be going next May. According to <a href="http://www.wsj.com/articles/deutsche-bank-co-ceos-to-announce-resignations-1433674815">the Wall Street Journal</a>, a source said that Jain found his lack of German language fluency to be a barrier in communicating within the organisation.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-floyd-mayweather-spends-his-money-boxing-2015-4">Here's how Floyd Mayweather spends his millions</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NiaGVpdDqdBR4NCmtjL5odLe14N1R4Hp" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Deutsche Bank shares are exploding upwards after its CEOs were replaced

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Deutsche Bank revealed on Sunday that it is <a href="http://uk.businessinsider.com/deutsche-bank-just-purged-its-leadership-and-appointed-a-new-ceo-2015-6">replacing </a><span><a href="http://uk.businessinsider.com/deutsche-bank-just-purged-its-leadership-and-appointed-a-new-ceo-2015-6">co-CEOs Anshu Jain and Jurgen Fitschen with John Cryan</a>.</span></p><p><span>The markets clearly loved the news this morning as the <a href="http://uk.businessinsider.com/deutsche-bank-shares-are-exploding-afterwards-after-its-ceos-were-replaced-2015-6#ixzz3cSGmwNA1">stock price exploded in the early trading session</a>, adding €2.5 billion ($2.79 billion, £1.82 billion) to Deutsche Bank's market capitalisation.</span></p><p><span>While this is a pretty brutal indictment of the performance of its CEOs, a number of analysts across the market warned that Deutsche Bank's problems are far from over. </span></p><p><span>In fact, many say that the German lender needs to address a number of structural issues that are causing a greater problem to its existence than just management. </span></p><p><span>In May, Fitschen and Jain faced down a <a href="https://www.db.com/ir/en/content/ir_releases_2015_4967.htm">storm of shareholder criticism over its strategy</a> and admitted their performance had fallen short. <a href="http://uk.businessinsider.com/r-deutsche-bank-ceos-ask-for-support-as-cost-cuts-loom-2015-5#ixzz3cSLHPfXn">They also asked at the time if shareholders would continue to back them as they cut costs and reshape strategy</a>. Many called Deutsche Bank's restructuring plan "<a href="http://uk.businessinsider.com/r-deutsche-bank-ceos-ask-for-support-as-cost-cuts-loom-2015-5#ixzz3cSLHPfXn">too little, too late.</a>"</span></p><p>Only a month before that, <a href="https://www.db.com/ir/en/content/ir_releases_2015_4951.htm">Deutsche Bank revealed that earnings fell by half in the first quarter this year</a>. This was a greater-than-expected drop as q<span style="line-height: 1.5em;">uarterly net profit sank to €559 million (£408 million, $608 million) versus a year ago.</span></p><p><span>Take a look at what analysts at Goldman Sachs say in a research note this morning (emphasis ours):</span></p><p style="padding-left: 30px;"><span style="line-height: 1.5em;">All in, we believe this announcement could initially be <strong>taken well by the </strong></span><span style="line-height: 1.5em;"><strong>market</strong> - however <strong>we expect this to be short lived</strong>. Deutsche Bank's <strong>central </strong></span><span style="line-height: 1.5em;"><strong>challenges are structural, rather than management related</strong> - the basic </span><span style="line-height: 1.5em;">difficulty is the absence of a high ROE platform. <strong>DBK does not have a </strong></span><span style="line-height: 1.5em;"><strong>highly profitable private bank</strong> (as is the case with UBS/CS), and its </span><span style="line-height: 1.5em;">retail/commercial bank is low ROE. At DBK, investment banking (and FICC) </span><span style="line-height: 1.5em;">is the highest ROE business.</span></p><p><span><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Goldman Sachs analysts also provide a whole section in its note on how "Does the new CEO imply a radical strategic change? We doubt it." It also provides a chart about how Deutsche Bank is falling behind the average performance of an European bank.</span></p><p><span>Credit Suisse analysts are also doubtful over how long the positive rally on Deutsche Bank stocks will last.</span></p><p><span style="line-height: 1.5em;">In a research note this morning, Credit Suisse analysts said (emphasis ours):</span></p><p style="padding-left: 30px;"><span>Whilst the co-CEOs were under significant pressure following a </span><span style="line-height: 1.5em;">disappointing strategy update, </span><span style="line-height: 1.5em;">and challenged by a portion of shareholders at the last AGM, the timing of <strong>this </strong></span><span style="line-height: 1.5em;"><strong>announcement is a surprise</strong> (only 6 weeks after the strategy update). </span></p><p style="padding-left: 30px;"><span style="line-height: 1.5em;">With the </span><span style="line-height: 1.5em;">personality of the new CEO being highly regarded by the market, <strong>we think this </strong></span><strong><span style="line-height: 1.5em;">announcement could re-open the strategic debate. Awaiting clarity on this, we </span></strong><span style="line-height: 1.5em;"><strong>remain Neutral</strong> (TP €30.5) but expect share price reaction to be initially positive.</span></p><p>Meanwhile, analysts at Morgan Stanley said the new CEO Cryan will focus on "execution as much as strategy." Judging by its note, it has a little bit more faith that Cryan will be able to fulfil promises of cost cutting (emphasis ours):</p><p style="padding-left: 30px;">"We think sharper <span style="line-height: 1.5em;">execution will be critical to achieve value potential. <strong>New CEO John Cryan we </strong></span><span style="line-height: 1.5em;"><strong>recall had a tight handle on costs whilst at UBS</strong> ... Addressing the high exit costs of non-core will be a focus - and Cryan </span><span style="line-height: 1.5em;">had a good track record on addressing non-core head on at UBS."</span></p><p><span style="line-height: 1.5em;">So in other words, ousting Jain and Fitschen may have a short term effect on Deutsche Bank's stock price and provide some form of hope that Deutsche Bank will improve its performance, but Cryan will need to tightly control costs and bring the bank back into profitability if the lender is going to please its shareholders in the long-run.</span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/the-little-prince-movie-trailer-2015-4">'The Little Prince' trailer looks better than anything Pixar has made in years</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="0xeDVudDo0AzTXdVje-s_6UCjPAA3qlY" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

GOLDMAN SACHS: Deutsche Bank's biggest problem is NOT management - it's just not profitable

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Here is what you need to know.</p><p><strong>Deutsche Bank has a new CEO. </strong>Former UBS CFO <a href="http://www.businessinsider.com/deutsche-bank-shares-are-exploding-afterwards-after-its-ceos-were-replaced-2015-6">John Cryan is taking the reins at Deutsche Bank</a>. Cryan takes over following the resignation of co-CEOs Anshu Jain and Jurgen Fitschen. Jain will be leaving the firm this month while Fitschen will be stepping aside next May. The stock was up as much as 8% on the news in German trade.</p><p><strong>Turkey's president lost his parliamentary majority.</strong> Recep Tayyip Erdogan's AKP <a href="http://www.businessinsider.com/turkish-elections-lira-and-stock-markets-tumbling-after-president-recep-tayyip-erdoan-suffers-election-blow-2015-6">lost its majority in the weekend election</a> as a minority party representing Kurds made big gains. The setback means Erdogan will likely need to form a coalition government by partnering up with the far-right. A new election will take place if a government is not formed within six weeks. The results pushed Turkey's lira down more than 5% to a record low of 2.8096 per dollar.</p><p><strong>China's trade surplus grew.</strong> China announced a <a href="http://www.ft.com/intl/cms/s/0/885ef5a6-0dab-11e5-aa7b-00144feabdc0.html#axzz3cSyqfdZO">surplus of $59.5 billion</a>, up from $34.1 billion in April. The larger than expected surplus came as exports slipped 2.5% and imports tumbled 17.6%. According to the FT, "Export-focused manufacturers , who thrived during the past decade as China became the factory of the world, are under pressure because of the strength of the renminbi relative to most other major currencies apart from the US dollar." China's renminbi slipped 0.1% to 6.2060 per dollar.</p><p><strong>Japan's GDP saw a a huge upward revision. </strong>First quarter Final GDP was revised up to <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=newssearch&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0CB0QqQIoADAA&amp;url=http%3A%2F%2Fwww.cnbc.com%2Fid%2F102735507&amp;ei=x3R1VbWrHomfNo66gdgP&amp;usg=AFQjCNH79Q2olw3epkt6zAjP8PMayt2Fvg&amp;bvm=bv.95039771,d.eXY">an annual rate of 3.9%</a> from its preliminary reading of 2.4%. CNBC reports, "The upward revision mostly reflects better-than-expected capital spending, which rose 2.7 percent on quarter, far higher than the 0.4 percent preliminary estimate." Japan's yen is stronger by 0.3% at 125.31.</p><p><strong>The US denies President Obama was complaining about the strong US dollar at the G7 meetings. </strong>A French official was quoted as saying President Obama made references to a <a href="http://www.bloomberg.com/news/articles/2015-06-08/obama-said-to-tell-g-7-leaders-strong-dollar-poses-a-problem">strong US dollar hurting the economy</a>. However, a US official <a href="http://www.reuters.com/article/2015/06/08/us-g7-summit-obama-dollar-idUSKBN0OO0NG20150608">denied the report</a>, suggesting, "He made a point that he has made previously, a number of times: that global demand is too weak and that G7 countries need to use all policy instruments, including fiscal policy as well as structural reforms and monetary policy, to promote growth." The US Dollar Index is little changed at 96.30.</p><p><strong>There is speculation Diageo will be taken over. </strong>The alcoholic beverage producer spiked in London trade following a report from Brazilian newsweekly Veja that Brazilian billionaire Jorge Paulo Lemann and his partners, Marcel Telles and Beto Sicupira, at private equity firm 3G Capital are <a href="http://uk.businessinsider.com/diageo-shares-rise-on-brazilian-billionaire-lemanns-bid-2015-6">looking to buy the company</a>. Johnnie Walker whisky, Smirnoff vodka, and Guinness beer are among the company's products.</p><p><strong>Sears Holdings posted a big loss. </strong>The company announced a loss of $2.85 per share as revenue tumbled 25.3% to $5.88 billion. <a href="http://www.prnewswire.com/news-releases/sears-holdings-reports-first-quarter-2015-results-300095105.html">According to the release</a>, "Kmart and Sears Domestic comparable store sales declined 7.0% and 14.5%, respectively, in the first quarter of 2015 driven by more efficient and targeted promotional and marketing spend, and a focus on sizing certain categories, such as consumer electronics, to better fit member needs, that together generated higher margins and increased profitability year-over-year; revenues were also impacted by port issues on the West Coast."</p><p><strong>Apple will be making some big announcements today. </strong>Apple is holding a press event at Monday's <a href="http://www.businessinsider.com/apple-wwdc-ios-9-2015-6">conference for developers</a>. The company is expected to announce major improvements to the apps available for the Apple Watch. Also, look for Apple to possibly debut its streaming music service, and announce updates for the iPhone, iPad and Mac.</p><p><strong>China's stock market hit a 7-year high and Germany's entered a correction. </strong>Overnight, China's Shanghai Composite (+2.3%) led Asian markets higher as trade hit its best level since the first quarter of 2008. In Europe, Germany's DAX (-0.6%) is now 10% off its April 2015 high. S&amp;P 500 futures are down 3.00 points at 2089.25.</p><p><strong>US economic data is absent from the calendar. </strong>Data picks up tomorrow with the release of wholesale inventories and JOLTS - Job Openings.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-floyd-mayweather-spends-his-money-boxing-2015-4">Here's how Floyd Mayweather spends his millions</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NiaGVpdDqdBR4NCmtjL5odLe14N1R4Hp" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

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Why is Anshu Jain’s resignation from Deutsche Bank’s top job such a big deal

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