Speculation is growing that Deutsche Bank that, when it comes to naming a successor for CEO Josef Ackermann, the bank may risk the pitfalls of splitting the job between the head of the investment bank, Anshu Jain and the chief of German operations, Jürgen Fitschen.  Such a Solomonic decision apparently would satisfy both men.

Indian-born Anshu Jain, 48, ... presently oversees the bank’s trading and transaction businesses, which would make some question the logic of his candidacy as chief of a German bank.  For one thing, he's not fluent in German and is seen as ill-suited to handle the political and ceremonial responsibilities expected of the head of the country’s signature bank.  Mr. Ackermann, whose contract as chief executive runs until 2013, was a crucial adviser to Chancellor Angela Merkel during the global financial crisis. 

However, it's hard to overlook the fact that his business areas generate far more profit than the bank’s other units combined.  He also has been a spokesman for the banking industry on regulation, having served as chairman of the Institute of International Finance - an association of the world’s biggest banks, which includes Goldman Sachs, Morgan Stanley and Citigroup.  Plus, there's significant risk that Deutsche Bank might lose Mr. Jain, its top moneymaker and a favorite of investors, if he doesn't get the top job. 

On the flip side, the German news media has reported supposed friction between Mr. Ackermann and Clemens Börsig, the current supervisory board chairman,  Add to that signs that the succession debate might be straining relations between Mr. Ackermann and Mr. Jain.  "The public back-and-forth over personnel has increasingly damaged the image of the bank,” the Frankfurter Allgemeine Zeitung wrote in an editorial.

Stay tuned.  It would appear that DB has the luxury of time to make its decision.  [Bloomberg 7/11/11]