The pecking order among Frankfurt’s banks used to be pretty clear-cut: first came the mighty Deutsche Bank, then came its smaller, weaker competitor, Commerzbank.
Deutsche Bank came through the financial crisis in pretty good shape, bouncing back to quickly earn billions while Commerzbank needed to be restructured – and had to be partially nationalized.
This relationship now appears to be shifting.
The new chief executive of Deutsche Bank, John Cryan, last week announced record losses of €6.8 billion, or $7.38 billion, and persuaded investors to accept two more lost years; shareholders won’t receive a dividend in 2015 and 2016. The supervisory board eliminated last year’s bonus for the whole executive board.