Deutsche Bank Case Study
1. Deutsche Bank History and Business Overview
Deutsche Bank was founded in 1870 on the basis of foreign trade. With the opening of three international branches in Japan, China and the United Kingdom within three years after initial operations. The bank had funded a number of large-scale industrial projects such as the Germany’s electrical engineering industry and the building of the Baghdad Railway from 1903 to 1940.
The bank was challenged by inflation, war and other global crisis in the first half of the twentieth century, which saw the bank taking advantage in consolidating and entering many mergers and acquisitions. Some of these acquisitions were German Bank of London in 1870, Deutsche Bank London Agency, as a business outlet in 1873 and was liquidated due to the First World War, in 1914, the bank cooperated with Midland Bank and many other banks in the European Banks ' International Company (EBIC) in 1963.
European Banking Company (EBC) which operated in international financing and underwriting was established in London in 1973. London branch of Deutsche Bank was opened again in 1976 after the Second World War. A stake in Morgan Grenfell was acquired by Deutsche bank in 1984, Sharps Pixley was acquired in 1994, and in 1999 Bankers Trust was acquired. The Bank’s share was listed on the London Stock Exchange (LSE) from 1976 until 2006 (Deutsche Bank, 2014).
2. Why did the Financial Crisis Occurred?
The fall of giants in the financial industry such as Lehman Brothers
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