Deutsche Bank has come across as the last most promising contender. At a time when all other investment banks in Europe, such as UBS, Barclays, and Credit Suisse are retreating to retail and private banking amid the discontent of investors and stringent regulatory norms, Deutsche Bank is doing the opposite. Industry experts believe it is aiming to emerge like Goldman Sachs, and nothing less.
Chief Executive of Barclays, Antony Jenkins, declared last month that he dint have much patience, hinting on the potential cut back that might get forced on the institution following the not-up-to-expectation results of the bank. However, it seems Deutsche bank is pretty patient when it comes to its operations. Despite setbacks, upheavals, and uncertainty in the conservative domestic market, the institution has grown as an investment bank through the last three decades. Their journey to growth began with the buying of Morgan Grenfell in 1989, and rest as they say is history.
Opinion leaders seem glad that Deutsche Bank has taken up the responsibility of competing with the sharks in the banking sector once referred to as “bulge bracket”, led by Morgan Stanley and Goldman Sachs. Europe is in the need of having at least one investment bank as the champion. Without any of its banks or financial institution taking risk of emerging at the market forefront, Europe will be at risk of getting highly dependent on Wall Street, more so to run and shape the regional capital markets.
The region has already witnessed the excesses of regulators and the financial trading owing to the ever tightening rules. Although, many of these rules were mandated with right intentions yet as a byproduct they led to reinforce the US hegemony. The stand taken by Deutsche Bank is expected to create opportunities for Europe to make a mark in the Wall Street.