On and of speculation about the financial strength of daunte your bank has pushed it shant prize to a record low of. The u. S. The u. S. Department of justice is seeking to impose a record fine on Deutsche Bank for misleading invest as. Weve been in the headlines last year as full a number of the wrong reasons and this didnt help the. Generalists have a. Traditionally been welcome here now were allowed in to ask all the questions we want but how honest will the answers be how endangered and how dangerous is this bank really. Visitors are greeted by a globe everyone is meant to get that Deutsche Bank is only german in name were a global bank well be speaking to bankers and Financial Experts and will be looking at the figures and asking about old burdens and new risks. And. This is the management floor on the thirty six story high above frankfurt you can see a long way from here from the top of the world down there looks pretty small. Bank has more than one hundred thousand employees in sixty one countries its a huge company with more than Thirteen Hundred subsidiaries and assets worth one point six trillion euros. Which makes it sound like its the government you have to be told no its not that but it sounded german stability theyve been in it for one hundred years you can easily assume that whatever they do is right for the but you have to reflect that its always different people since july twenty fifteen the top dog here has been john cryan he came in to overhaul the bank hes british rational and modest with a subtle sense of irony every choose do the members of the board gather here frank for that thirty fourth floor but prove the crisis has been the number one issue for the bank since twenty sixteen badly performing loans fines poor share prices so i tend not to feel too much stress and i hope thats not just a surface feeling and underneath theres a lot of stress but. Generally i tend to be fairly relaxed and maybe a little too logical sometimes but. I think thats part of the role one of the new many in charge on his way to the weekly meeting Marcus Schrenker formerly the chief finance officer is now the president and co head of corporate and Investment Bank and the deputy c. E. O. Its the first time a Television Team has been allowed to film a Board Meeting the bank wants to regain trust and it needs to the combined annual salary of the people in this room is a good twenty five Million Euros thats a lot of money but much less than their predecessors got the ones who plunged the bank into the crisis the big money was yesterday todays about jon cryer and hes here to clean up the bank his mandate to exude confidence questions even on the right his co head of private and commercial banking used john cry and other deputy the Board Members of Deutsche Bank speak english meetings eight men and two women from five countries who attend by Video Conference if necessary were going to look at the banks past to try and understand its present and future. Of june twenty sixth seen the i. M. F. Published the results of an investigation page twenty nine contained a frightening sentence Deutsche Bank appears to be the most important net contributor to systemic risks. So how dangerous is back. And i often do when one of these dominoes fall lets assume this one falls because this bank has lost the trust of investors it could be that this bank folds too but then the risk that even more will fall is very highly we call this earth heard effect and we distrust the entire Banking System and to battle the. To me Deutsche Bank has long been in the top five perhaps its in the top three globally in terms of these risks. Its about the culture its about the structure youve been through a number of c. E. O. s or changes in executives and it seems like you still have the same problems so thats an indicator that these are really deep seeded and hard to deal with thats for us what the i. M. F. Was highlighting there was basically that dodger bank is one of the most networked thanks in the world at least from its distant barking deserve it but this things inverts why were called a globally Significant Institution on but i. I personally see that as a logical consequence of our Business Model its what is aunt and id go as far as to say that its a confirmation of the significance of Deutsche Bank and in the whole system of the doj and bunting because our system. Not a warning but an honor its all a question of interpretation or translation. And someone had kindly translated into german risk and connectedness into a fairly which if im not mistaken means dangerous in english and i didnt feel we were dangerous when either a danger to ourselves not of the system but of course were a big bank and hopefully we have lots of connections. In order to twenty sixteen it immediately became clear how small the step from risky to dangerous really is on the sixteenth of september the wall street journal published a sensational story the American Department of justice was demanding dont your bank pay several billion dollars because of irresponsible mortgage lending practices suddenly the most connected bank in the world seemed in real danger. And. It was an interesting day we were all in milan for a management Board Meeting that we had to think very quickly about how to respond if it was to be expected that this figure would cause shock waves in the media and on the markets which it did. In good an inmate in london mackinaw said alcatel and that. Yvonnes if we were certain that the volt seen billion wasnt correct but weve also certain that wed get a strong klines response as a result not was a worry the problem is that you can get a problem from people expecting that to be a problem become a sort of on the side problem called. Junk prime the c. E. O. Had just been in office for a good year he was brought in to clean up a bank that was already suffering some reputational damage he was taking completely by surprise by the announcement in september. I have to say my initial reaction was a bit one of irritation. Not least because the communication of that number would inevitably be misleading and thats because we had no intention of paying that amount and we said so i think with some force on the evening on which we we found that it had been made public as soon as the fine of billions of dollars had been announced the hedge funds struck they didnt just sell Deutsche Bank shares on mass they also talked loudly about it share prices fell and thats exactly what the hedge funds were banking on civil you saw that that lingering uncertainty did cause some of the clients of the bank to to think about their positions at the bank and whether they wanted to maintain those positions and so within a couple of weeks i think it was around september twenty ninth we reported bloomberg reported that some hedge funds very very small portion of some ten hedge funds out of eight hundred plus customers how to indeed shifted some of their balances some of the cast cash positions elsewhere amid concern about the solidity of the bank this is reminiscent of what happened two thousand and seven two thousand and eight over a period time clients pull money and it snowballs very very very quickly it has the potential to be exponential. The share price had been edging downwards for months after the hedge funds publicly withdrew their money for all to see the share price plummeted to a record low to act and cause the share price went down to nine the lowest rate i can remember because and it needs to move and if youre going on. That meant the bank could be taken over cheaply or it could be broken up it could be propped up by the state or it could disintegrate further into bankruptcy. The chancellor tried to exude an air of calm but in doing so just showed how serious the matter really was. Thirteen months most all i want to say about Deutsche Bank is that Deutsche Bank is part of the german banking and Financial System we would like all businesses even if there are temporary difficult his to develop positively. And why was she so nervous dont you bank is at the heart of the Financial System closely networked vajra vast number of deals what would happen if it went bankrupt we asked Banking Expert professor hunts pay to book off. Dodger bank is essential to germany we have to save it that could cost the taxpayer money that means europe would have less money in a really bitter situation that could mean that the german and the european taxpayer would in directly pay the fine to the americans. Left alone can you take a touch of at sixty votes to push. Things became hectic in winter twenty sixteen colophon war was to negotiate the fourteen billion dollars down to an acceptable level the clock was ticking the matter was supposed to be off the table by the end of the year. As its now youre sitting in a room in the department of justice in brooklyn in a normal meeting room on its own. Or and both sides present the matter from their point of view of the dinner went to not opinions differ and so you make office and Accounting Office over the course of days and weeks ago a Mental Institution on the board ongoing on the board all those. Negotiations cost money and trust the longer they take the more of buffer lost. To the fall and of course we knew wed have clients who would react to that with extreme irritation and weve done a lot to prepare ourselves and so on when you have such to be loans you always risk losing client money or all the clients will say that if they have business in mind theyll put it off and come back later when everythings over and often in the life or income dont be dumb enough for bias. Coming down clients colleagues and shareholders imparting confidence around the world twenty four seven nothing was more important losing trust means losing money twenty thirty million month after month the bank had to put a stop to that but hell. Come on in a bank can you trust a bank thats been landed with such a big fine the whole institution could be at risk even if theres not much of substance behind it banks live on trust of. The banks reputation was badly hit the only solution was to look ahead to the new management decided on a policy of openness bank Spokes Person eigen doff invited us to participate in a conference for senior managers. If we behaved more way and all of you know that you can face the horrors of time and. You can do something once you know you cant try to be some people you have to live what you want to be but what do they want to be open and credible thats why were allowed to film but the Spokes Person also reveals a fear of too much openness youll see exactly what we want to show you the banks own selfconfidence has taken a knock and see if we have this act up was when you told people in the past you worked at Deutsche Bank there was no further comment as it was a first class address from a reputational standpoint that was one of the reasons why i chose my job because it stood for solid training that uncle if you have a chance or a good fortune to train a dog a bank like it was a great way to get your career going about us in poland she can spoof him yet the fifth of december twenty sixth seen speculation about the fate of don chipp bank had now been ongoing for almost three months the United States was still demanding fourteen billion dollars the International Business press was invited to the dutch a banks guest villa the address of past glories for a confidential background briefing. If the journalists trusted dacha bank a little bit more after this evening it would be a big step forward. It was a tense period and i personally wanted to take some onus. Ship of the situation was a very important situation for the bank and we wanted to clarify the matter as soon as possible but of course in those negotiations you never controlled the timetable and it took a little longer than we would have liked it lasted much longer than expected and the discussions were wide ranging what would happen with the fourteen billion pound the bank intend to make money again in the future without profits the bank would still be a risk and dangerous to the whole Banking System c. E. O. John cryan in the middle flanked by the co heads of investment in Private Banking they are the crown prince is one of them will probably replace crying at the head of the table after the cleanup operation is finished if everything goes well. Private banking boss christian saving tells mathias book one of the seven german regional bosses to talk to his clients personally and calm them down tell the people out there that will make it well get through this fourteen billion just as weve survived all the other crises in a hundred and forty seven year history. Scott target and there were days and even weeks when i had twenty meetings a days because the clients wanted to find out for themselves what was going on at the bank do you have to tell clients that the bank remains strong and stable at the same time on you have employees who are worried you larceny comes from the use or mom but it wasnt just clients who were involved hundreds of branches were two hundred and eighty eight were closed down five hundred were left tens of thousands of employees were worried about their jobs. Bank actually has a different background it has traditionally served the german business world. Think germany is a perfect example of a country that did extremely well over a long period of time with it they a very lets say conservative approach to finance focused on the customer focused on the corporate sector and so on. You never bill you did not build the modern German Economy on the basis of speculative financial activity. Some other countries such as the United States had more of a tradition lets say in that kind of speculation you did you did not praise from a former i. M. F. Economist no less but for a long time dont your bank was embarrassed about its german business. Regional banks mightiest book is on his way to meet a client the give them Packaging Company in bad noise in western germany. The point king is a shining example of germanys small and medium sized businesses or s emmys it has factories across europe and most recently in canada. The boss is certain with its course Plastic PackagingAmerica Needs german yogurt pop technology. I mean we have some clients but i would like to have people in north america who i can talk to about a new Customer Base and even new contacts. Thats an easy call for the international Deutsche Bank. From our kentucky luggage in touch with our colleagues in new york we have Research Analysts for the Food Industry and i can put you in touch with. Them on contact us. From bag to wall street an international network. William schmitz works for dontcha bank and hes happy to be of assistance. Oh yes absolutely you know what ill do is like that when i get back to my desk. Some data on some of the volume trends in the u. S. And other food and beverage side you look at some of the trends in the u. S. Food retail environment. The german yogurt part goes to america that too is one Investment Banking is about. This is a Company Business isnt states as they conduct their deals or if they want to sell shares or bonds they advise companies when they float on the stock markets and during merges and they juggle stocks foreign currencies and Financial Products of all kinds Investment Bankers are the ones who make that really big money for their institutions. Banks Investment Bankers dreamed big and went to the hyundai and of capitalism the United States brought back some really big risks that deals scared the i. M. F. And caused the American Justice Department to spring into action they decided in one thousand nine hundred more or less that they wanted to radically transform themselves and shift from being what i would describe as a somewhat stodgy conservative European Commercial Bank that basically learnt to heavy industry to a new high powered high respect that would engage in Investment Banking to routers trading and do securitizations all of that required a talent and i think ability that they did not hear. You get in the us here so often that when you see i remember we went to a University Campus to attract students to work for Deutsche Bank because if you showed up here the nikkei the column. So they bought in the case of Deutsche Bank they bought. Bankers trust to get into the Investment Banking business in this country. In our bank after Bankers Trust hundred