When Deutsche Bank announced last June that John Cryan, a British banker from UBS, would be replacing Anshu Jain and his co-chief executive at the helm of Germany’s largest bank, investors had great expectations. Shares in Deutsche Bank jumped 8 percent on the news alone. But the euphoria didn’t last.
There are many reasons why the honeymoon ended so soon.
Some have to do with structural issues affecting all of Europe’s financial sector. It is not only Deutsche Bank that has had to cope with increasingly tough post-financial crisis regulation and near-zero interest rates.
Mr. Cryan faces a long to-do list. That puts him in a position similar to his banking industry peers, Tidjane Thiam of Credit Suisse and James Staley of Barclays.
They, too, took over financial institutions in 2015, and each faces an equally tough reconstruction task as Mr. Cryan does.
So far, the going has been rough for all three. The stock prices of Credit Suisse and Barclays have fallen 15 percent and 18 percent, respectively, under their new bosses. Those results are not exactly brilliant, but they look good compared with the 24-percent decline at Deutsche Bank since Mr. Cryan took over.