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Indian banker touted as potential Deutsche CEO

AFP · 21 Jun 2010, 09:46

Published: 21 Jun 2010 09:46 GMT+02:00

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Jain, 47, has just been appointed sole head of the German lender's most powerful division, its corporate and investment banking division, which accounts for the lion's share of group revenues and profits.

Previously Jain, who until recently owned a stake in the Mumbai Indians, the all-star Indian Premier League cricket team owned by the super-rich Mukesh Ambani, ran the division in tandem with Michael Cohrs, who is retiring.

He will run all Deutsche's sales and trading operations, including government and corporate bonds, commodities, emerging markets, equities, foreign exchange, money markets, interest rate and credit derivatives.

Armed with a degree from Delhi University and an MBA in finance from University of Massachusetts Amherst, Jain first cut his teeth at Merrill Lynch in New York before moving to his present employer in London in 1995.

And despite running a division that earned its crust using the kind of opaque investment bets that brought the global financial system close to collapse in 2008, Jain is generally seen as having had a "good" crisis.

He is credited with having managed rapidly to re-organise his division post-crisis and get it back to making money. In the first quarter of 2010, it generated €2.7 billion ($3.3 billion) in pre-tax profits.

Since 2002 he has been on the bank's executive committee and since April 2009 a member of the management board, earning an estimated €9.7 million last year, €200,000 more than the man he might succeed, Josef Ackermann.

"Of all the internal candidates, Jain has the best chances," Konrad Becker, analyst at private German bank Merck Finck, told AFP.

But Deutsche Bank is no ordinary bank, and being selected to fill the Swiss Ackermann's shoes will not be easy. And a strong candidate from outside the bank, which employs 77,000 people worldwide, may yet emerge.

For one thing, Germany's biggest bank also has significant private and retail banking operations, not least in Germany, areas which are being expanded via acquisitions and which the investment banker Jain would also have to run.

More importantly, though, the position of Deutsche Bank boss is a highly visible one in Germany, a high-profile job that requires its holder to hobnob with politicians and business leaders.

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Ackermann, 62, is perhaps one of Germany's best-known chief executives, dining with Chancellor Angela Merkel and appearing on television chat shows.

Fluent German is indispensable and Jain's is thought to be weak at best.

"The extent to which Mr. Jain is able and willing to perform this role is a question mark," Becker said.

"His Indian origins are an issue. It wouldn't be a problem with Deutsche Bank's customers or with employees ... The problem might be with the German public."

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Your comments about this article

11:08 June 21, 2010 by Johnne
So, no German citizen, or even residence..white,black,turkish,italian,asian british or american is qualified to become the next CEO. there are thousands of intellectual Germans regardless of their backgrounds who are more than qualified for this position. You see, that´s one of the problems facing this country. We never apreciate what is ours, it´s always about other country´s or other people´s things. This country is a multi-cultural soceity but you don´t see it because they don´t give the multi-culturism a chance to thrive..so so funny.
11:47 June 21, 2010 by Kaizen
The article concludes well .... It says '' Hard for public'' , Germans can never digest foreigners in good position. They always want to show some negative points against the foreigners , most of the times it is language . If you learn language also they will point out another mistake in you and try to demotivate the negative points ...
12:00 June 21, 2010 by chimpansi
screw the german public, they dont have a choice. They arent looking for CEO of a charity organization.. DB is publicly held company with shareholders across the world. If they care German public shouldnt have let money from schwarz skin investors. This guy with 'Indian Origin' has made billions for DB & its 'German public'. They didnt have a problem till date about his origin... Grow up 'german public', new world has more leaders from developing world!!
12:35 June 21, 2010 by Prufrock2010
"He is credited with having managed rapidly to re-organise his division post-crisis and get it back to making money. In the first quarter of 2010, it generated €2.7 billion ($3.3 billion) in pre-tax profits."

Maybe with the help of the $6 billion Deutsche Bank received in the 4th quarter of 2008 as part of the AIG bailout -- after DB posted losses of 4.8 billion euros in the 4th quarter of 2008.

Give me $6 billion of taxpayers' money and I'll show a profit, too.

And whatever happened to the proposed salary cap on German bank executives? 9.7 million euros a year is obscene, even by investment banking standards.

Can't wait to have another high-flying high roller running a major bank. What could possibly go wrong with that?
13:36 June 21, 2010 by chimpansi
Prufrock2010, $6Billion was the money which AIG had to give DB. It was not a act of charity. Taxpayers rescued AIG not DB. Whats wrong in paying 9.7million to a guy who turned around things so well? you HAVE to pay for the talent. Remember he has been a consitent performer.

Why isnt anyone complaining about the money football players make?

May be all the banks need more such talented managers.

Capatilism may look skewed but there is no better alternative to it. So its better to embrace it.
13:49 June 21, 2010 by saki
If "German Public" has such kind of problems, why dont they go for parties like NPD. Bring them in power and have ur Nordic race and Herrenvolk in Power. So pathetic some of the Germans still believe in such things and cant bear Ausländer at high profile position.

I wud suggest to the people here generating profit, 1st reach at that level n then talk. Its much easier to brag sitting outside.
16:47 June 21, 2010 by Prufrock2010
chimpansi --

You have a short memory. AIG wasn't the only player in the "too big to fail" game. Deutsche Bank was in it too, along with B of A, WaMu, Citibank, Goldman Sachs, JP Morgan Chase, ad nauseum. AIG was their insurer of choice. AIG became a flow-through conduit for taxpayer money that went to the banks, including DB, who bought more toxic American securitizations than any other German bank.

This whole concept of having to pay "talented managers" obscene amounts of money is the Wall Street mantra that's offered up on a daily basis to justify their greed. These "talented managers" engineered a global economic meltdown, but personally most of them made out like bandits (or robber barons), which they are. You are simply regurgitating the Wall Street lobbyists' talking points, which are belied by the "performance" of these greedy pigs who view any sort of regulation as Armagheddon.

Capitalism is all well and good so long as regulations are in place. And I'm not talking about regulations written by those who are ostensibly being regulated. Laissez-faire capitalism is a disaster, as we all should have learned from the events of 2008 (and continuing to this day). Ask the Chinese how their brand of totalitarian capitalism works for them. They regulate in spades.

And I agree that football players and other athletes make obscene amounts of money, but if their franchise owners want to pay them that and the public is stupid enough to support the products that pay for those salaries, that's merely a reflection on the f'd-up priorities of people who place entertainment over everything else in society. But these overpaid athletes don't have the power to bring down financial institutions and even nations. Bankers do.
23:37 June 21, 2010 by Dizz
"His Indian origins are an issue. It wouldn't be a problem with Deutsche Bank's customers or with employees ... The problem might be with the German public."

Whatever some of you think about salaries (I think Julia Roberts getting over $20M per movie is ridiculous) the fact is, its demand and supply. My hunch is it will be no skin off Mr. Jain's nose if he's overlooked. with his performance record there'll be plenty of other banks happy to take him AND his expense account.

The sad part about the article are the lines I've quoted. Sad for Germany where individuals bend over backwards to appear friendly and then comment to you conspiratorially that they don't go to the corner supermarket anymore because there are too many Turks there. It always astounds me how the locals seems so self-congratulatory about their own open-mindedness while being in total blissful denial of their innate communal, xenophobic and pettiness. Die Heuchlerei.
15:03 June 22, 2010 by mounick
hey people we are all aryans cheer up and anyway we are living in globalised world where competetion is vital and good work is rewarded. there is no doubt indians are talented not lesser nor higher than the the german talent.
16:16 June 22, 2010 by hansestaat
(Armed with a degree from Delhi University and an MBA in finance from University of Massachusetts Amherst )

I hope THEY dont ask Mr.Jain for a Auslandischer Buildungsnachweise :) otherwise he might just be disqualified for the post !!!!!!

I am from India and i had to also get this thing called 'nachweise' for my university degree certificates and it doesnt sound so positive
22:07 June 22, 2010 by amit4422
Prufrock2010 -

The envious die not once, but as oft as the envied win applause.
23:31 June 22, 2010 by Prufrock2010
I don't believe that robber barons are deserving of applause. Nice thought, though. Who wrote that again?
11:15 June 30, 2010 by Tuti
I find it very amusing how far people understand real globalization. I think if you have talent then you should get a chance even in highly conservative German industry/society. If Pepsi can hire Indian lady as ceo or Indian Taj hotel hire German lady, or Tata motors ceo is German but have you seen any non EU (except US, Swiss) ceo in any German top managment? I think it is time to understand for German industry globalization of mind. 8 million foreigners but not a single foreigner ( EU/Swiss/US excluded) in any DAX top managment.

I am happy for Mr Anshu Jain to get this position. I am sure he is very good in his job others Deutsche Bank will not ofer him this post. Peter Löscher from Siemens is trying his best to get more foreign faces in his company. Only top manager in Germany who understands globalization. It is a shame for German industry not giving chance to ladies and persons of foreign origin (non EU, non swiss, non US) a chance. Germans working in India hardly understand Indian work culture and Indian local languages still they want to play big bosses. They should get work permit if they are able to understand local languages excluding English and local work culture.
01:34 February 23, 2011 by PaganinisViolin
Just thought I would let people know:

I was an intern at Deutsche Bank and I found that, as a person of foreign origin, there was a LOT of racism in the work place, both directly at me and as general conversation.

I ran to an American Bank and found them to be aeons more progressive and I have not had any such bad experiences there.

Anshu Jain must be very good at his job to make it to the top.
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