Deutsche Co-Heads On 'First Call', Bank Faces $1.9bn Payout

Deutsche Bank - External

Deutsche Bank co-Chief Executive Officers Anshu Jain and Juergen Fitschen said they share duties using a 'first call' system for matters that need to be escalated within the bank, while both providing pressing counsel to clients and politicians.

Bloomberg reports that the first call principle means 'our colleagues have one person they call if they have any doubts, and that person is responsible to carry the information on', Fitschen said Saturday on a panel with Jain in Berlin. 'Some issues we both have to deal with, such as with investors or politicians, those are decisive issues where we are both called upon'.

Jain and Fitschen revived a system of dual CEOs that Deutsche Bank has used three times in the past when they succeeded Josef Ackermann, 64, at the end of May. Pairing the two is an attempt to bridge the company’s roles as a Frankfurt-based lender to German companies and an investment bank that vies with Wall Street firms such as Goldman Sachs Group Inc. (GS)

In the meantime, Bloomberg also reports that Deutsche Bank may have to pay as much as $1.9bn in a case tied to the collapse of the Kirch group of media companies, a Munich court said Friday.

The case is one of several lawsuits continuing after Leo Kirch’s July 2011 death that allege the bank secretly plotted to bring about the demise of his media empire. Part of the conspiracy, they argue, was a 2002 interview on Bloomberg Television in which then Deutsche Bank CEO Rolf Breuer said 'everything that you can read and hear' is that 'the financial sector isn’t prepared to provide further' loans or equity to Kirch.

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