(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)
By Dominic Elliott
LONDON, Nov 27 (Reuters Breakingviews) - Josef Ackermann has evoked the ghost of Deutsche Bank (DBKGn.DE) past. The German lender’s former chief executive has criticised current co-CEO Anshu Jain for choosing to pass on a parliamentary hearing on Libor. Deutsche has certainly erred in keeping Jain back – not least because it has given Ackermann the chance to revive an unseemly Deutsche custom of undermining new leadership.
Jain is under no obligation to attend the finance committee hearing on Nov. 28. Indeed, Ackermann himself declined an invitation to a similar Bundestag hearing on tax havens in May 2009. Companies often dispatch other executives in place of CEOs to such hearings; this time, Deutsche is sending chief compliance officer Stephan Leithner.
But it would be better if Jain was attending. He is still relatively new in the top job and needs to earn public respect. He was responsible for Deutsche’s markets business during the period when Barclays (BARC.L) attempted to rig Libor. The hearing would have been a good place to start addressing questions about how Deutsche handled its own Libor submissions. With German elections looming next year, his absence makes him a political football. Green party politician Gerard Schick has already accused him of “chickening out”.
An appearance would also have allayed concerns that Indian-born Jain is out of touch with Germany. The appointment of Juergen Fitschen as a co-CEO was intended to address the issue, but the episode shows the co-head structure doesn’t insulate Jain from attack. There is no indication that Jain shrank from the task, as Ackermann has implied. But if it was a board decision to send Leithner, Jain could have insisted otherwise. Awkwardly, a u-turn now would look like a victory for Ackermann.
Only last month, Ackermann reportedly attacked Jain’s stance on the policies of the European Central Bank. The criticism evokes the top-level browbeating that has characterised Deutsche’s boardroom for years, usually with Ackermann on the receiving end. Supervisory board member Ulrich Cartellieri described him as “out of control” in 2004. A year later former Deutsche chief Rolf Breuer speculated whether Ackermann would be forced to step down. This is how things go at Deutsche. Still, that will be of small comfort to Jain.
- The former head of Germany’s Deutsche Bank Josef Ackermann criticised his successor Anshu Jain for not agreeing to appear at a German parliamentary committee hearing on Libor manipulation, Reuters reported on Nov. 26.
- “I always took these tasks upon myself,” Ackermann said at a Nov. 26 conference organised by business daily newspaper Handelsblatt in Frankfurt. “I think that in this instance, it is the boss who belongs on stage.”
- On Nov. 22, Gerard Schick, a politician in Germany’s Green party, accused Indian-born Jain of “chickening out”. Stephan Leithner, Deutsche Bank’s chief compliance officer, will attend the Nov. 28 hearing in Jain’s place.
- Birgit Reinemund, chair of the committee, told Reuters on Nov. 22 that Deutsche Bank had not given a reason for the switch but said it was not unusual.
- Reuters: Ex Deutsche Bank CEO criticises successor for skipping hearing [ID:nL5E8MQFG9]
Not so fast [ID:nL3E8LU39O]
Plain Jain [ID:nL6E8IP5CW]
Frankfurt am Jain [ID:nL4E8E82ZB] - For previous columns by the author, Reuters customers can click on [ELLIOTT/]
(Editing by Chris Hughes and David Evans)
((Reuters messaging: firstname.lastname@example.org)) Keywords: BREAKINGVIEWS DEUTSCHE/
C Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.