Ben Mcclanahan, Chief Executive, London discussed on FT Banking Weekly


At a temp ben mcclanahan and his guest there has been ken reese the chief executive of elevate the some prime lender we've also been talking through a city uk conference here in london to mark hope and baroness folklore this week we'll be talking about deutsche bank on a potential change at the top also three reasons to be cheerful about brexit and finally that interview that ben mcclanahan has done in the us with elevate the subprime lender that went public a year ago i martin to deutsche bank and the long running rumors are john cryan 's tenure at the helm of germany's biggest bank have resurfaced we hear talk of informal approach is being made to potential external successes what are you hearing exactly yeah so i think this is being driven by a strategic disagreement and debate that is happening right now at deutsche bank about the future of its investment banking business basically which is still the bulk of the group germany's biggest bank and the difference of opinion is really one on on timing and an how aggressive to be enshrining the balance sheet of the investment banking business which is still one of the largest in the world in terms of risk weighted assets and capital absorbs and and the reason the bank needs to do something is that the capital requirements so on it increasing on in several areas because of the basel socal basel four reforms so they can see the problem and also the bank is just not generating enough of return on equity to make it a long term viable business it needs to generate a higher return on equity and so the the difference of opinion is between the chairman of the supervisory board poor act like ner and the chief executive all and and chairman of the management board john cryan john cryan is very business tonight is he's analyze this problem in depth he knows what he wants to do you want to get on with shrinking the balance sheet of the investment bank but the strategy that he's pursued so far has been one of cost cutting and also a some hair.

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