The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

What's the substance in the divestment spin?

A BANK EXECUTIVE telling you he sees no prospect of his institution merging with another is a bit like a politician telling you he's quitting to spend more time with his family. Usually it's little more than bluster.

Bank of America CEO Ken Lewis assured investors time and again that his bank was not ready for another deal, only to fork out on FleetBoston at the end of 2003. Before him, Sandy Warner and his team at the old JP Morgan used to insist there was no room for mergers, only to sell to Chase once JPMorgan's return on equity hit 20% in the second quarter of 2000.

Now, though, might be one of those times when there's more substance than spin to such talk. When Credit Suisse CEO Ossie Grübel told investors last summer that there was no need or desire to merge Credit Suisse, or bits of it, with another institution, most took it with a pinch of salt, even though one reason Grübel had just forced out his co-CEO John Mack was the latter's greater receptiveness to a deal.

Now Joe Ackermann is giving it a try at Deutsche Bank. Last month, as the bank was releasing its 2004 earnings, Ackermann stated that there was no reason for the bank to consider an acquisition any time soon.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree