Deutsche Bank

Deutsche Bank was founded in Berlin to promote and facilitate trade relations between Germany and other European and overseas markets. The original founding charter, created in 1870, emphasized the bank's role in foreign trade. It was established by a group of financiers, including Adelbert Delbrück, Ludwig Bamberger, and Georg Siemens, and it played a significant role in financing industry development in Germany.

In 1929, Deutsche Bank merged with Disconto-Gesellschaft, one of the largest banks in Germany at the time. This merger was a significant step in consolidating the banking industry in Germany and aimed to create a larger institution able to withstand the financial pressures of the Great Depression. Before the merger, the two banks had already been closely cooperating since 1927. The merger solidified Deutsche Bank's position as a dominant financial institution in Germany.

Deutsche Bank acquired the British merchant bank Morgan Grenfell in 1990. Morgan Grenfell was a prestigious firm with a history dating back to 1838, and the acquisition marked Deutsche Bank's transformation from a primarily European bank to the largest foreign-owned bank with a significant presence in London. The move reflected Deutsche Bank's strategy of expanding its investment banking capabilities and international reach during the 1990s.

Deutsche Bank finalized its acquisition of the American investment bank Bankers Trust on 4 June 1999. This acquisition nearly doubled Deutsche Bank's size, making it the largest bank in the world at the time, and significantly enhanced its presence in the United States, crucial for its ambition to grow in investment banking. Bankers Trust complemented Deutsche Bank's strengths with its US-based operations and expertise in derivatives markets.

The Deutsche Bank building, located near the World Trade Center in New York City, was severely damaged during the September 11 attacks. Despite the destruction and subsequent issues, Deutsche Bank showed resilience in continuing its operations. The building was eventually dismantled, and the event marked an important moment in the bank's history, testing its crisis management and operational resilience.

Deutsche Bank, like many financial institutions, was significantly impacted by the global financial crisis of 2008. The bank had substantial exposure to mortgage-backed securities and reported significant losses. Deutsche Bank's strategy during and after the crisis involved restructuring and focusing on core strengths while managing its exposure to high-risk assets. The event reshaped its approach to risk management and regulatory compliance.

Deutsche Bank was fined $2.5 billion by US and UK regulators for its role in the LIBOR scandal, where bank officials were found to have manipulated benchmark interest rates for their financial gain. This scandal highlighted significant compliance and ethical deficiencies within the bank, prompting a re-evaluation of internal controls and a commitment to restoring public trust. It also resulted in numerous leadership changes and reorganization efforts.

Deutsche Bank reached a $7.2 billion settlement with the US Department of Justice over residential mortgage-backed securities, actions that had significantly contributed to the 2008 financial crisis. The settlement included $3.1 billion in civil penalties and $4.1 billion in consumer relief, addressing allegations that the bank misled investors about the quality of mortgage securities. This settlement aimed to resolve a major legal challenge facing the bank.

On April 8, 2018, Deutsche Bank announced Christian Sewing as its new CEO, succeeding John Cryan. This leadership change was part of a strategic effort to revitalise the bank after years of financial struggles, including losses and regulatory issues. Christian Sewing focused on cutting costs, strengthening the bank’s position in Germany, and improving profitability. The appointment marked a shift towards a more traditional banking approach.

Deutsche Bank announced a major strategic overhaul, reforming its business by cutting 18,000 jobs by 2022, winding down its equities sales and trading business, and focusing more on corporate banking, especially within Europe. This move was a part of measures undertaken to increase profitability and reduce costs. The plan included exiting businesses that were no longer sustainably competitive and investing in core business areas.

Deutsche Bank was one of the major banks to have offered services to Wirecard, a payment processor involved in a massive financial scandal. The 2020 scandal involved the revelation that €1.9 billion was 'missing' from Wirecard's accounts, leading to its insolvency. Deutsche Bank faced scrutiny for its role in providing banking services and loans, and it had to navigate the reputational damage associated with its involvement.