The appointment of John Cryan as chief executive of Deutsche Bank send shares in Germany's largest lender up 8 percent. As Ciara Lee reports investors judge the Briton a more credible contender than his two ousted predecessors to revive its fortunes.
A leadership purge and a new Chief executive - it's been a dramatic start to the week for Germany's largest lender Deutsche Bank. Briton John Cryan is taking the helm after the shock resignation of the group's co-chief executives Juergen Fitschen and Anshu Jain, over the weekend. They'd been battling to restore the bank's image after a series of regulatory and legal problems. Just weeks ago the bank was fined a record 2.5 billion dollars for manipulating the Libor benchmark. And it's also been probed over alleged tax evasion and money laundering. A management shakeup last month was supposed to sort the problems - but in the end investors wanted more. Robert Halver is from Baader Bank. (SOUNDBITE) (German) CAPITAL MARKET ANALYST AT BAADER BANK, ROBERT HALVER, SAYING: "Deutsche Bank has not had the best reputation over the last three years. It was always regarded as the bank with scandals. That image needs to be changed. It is like in politics: new brooms sweep well. They don't want to continue with the old ways and the old figureheads. And also very important: No more dual leadership. That does not make sense in the long run. Deutsche Bank's financial performance this year has also been disappointing. First quarter earnings fell fifty percent compared to 2014. Cryan has already spent two years on the bank's supervisory board and was formerly at rival bank UBS. He'll take over at the end of the month and has his work cut out. Jane Foley from Rabobank. (SOUNDBITE) (English) JANE FOLEY, RABOBANK, SAYING: "The retail banking sector in Germany, that could be difficult. The wealth sector of the bank well it's not as strong as some of the Swiss banks for instance. And of course if we look at the investment banking, again regulation and difficult conditions perhaps mean that investment banking doesn't have the sort of climate that it has had in years gone by." For now though, investors seem to welcome the news. Shares in the bank surged over seven percent in early trade. But tackling the bank's business model to satisfy investors in the longer-term could prove more of a challenge.