[ by Melanie Gretchen ]

Deutsche Bank's co-CEOs are winding down.  Down in performance.  Down in expectation.  Closer to down for the count than not.  Where will Anshu Jain and Juergen Fitschen go from here?

Just this month, the German bank has controlled Q4 expectations, had its headquarters raided by the police, and paid damages by force to representatives of deceased media magnate Leo Kirsch.  Up next is a potentially costly settlement with authorities investigating how banks set Libor.  Damage control would have gone a long way as far as the quarter loss.  Besides the costs of implementing its new strategy when it was unveiled in September, investors have also faced a profit warning in July and no clear change: up until their promotion last year, Messieurs Jain and Fitschen were part of the problem and not the solution.

For now, Deutsche's position – denial of allegation of accounting wrongdoing, in relation to mark-to-market positions during the crisis – is holding firm.  The firm is on track to reach a Basel III Tier 1 core capital ratio target of 8% by the end of March, and layoffs have remained minimal, amid mass cuts industry-wide.  Going forward, Dominic Elliott of Breakingviews is of the opinion that the co-CEOs should unveil a strategic acceleration in the New Year.  Hopefully investors will give them the time.

For further details, go to [Breakingviews, 12/14/12].