Deutsche Bank

The following entry is the one originally submitted by the contributors. The previous version of this entry that appeared in the original printing of the encyclopedia was not the one submitted by the contributors and was mistakenly used by the Publisher. The entry was written by Drs. Efthimios Poulis and Konstantinos Poulis, and the Publisher apologizes for submitting the wrong version of this entry for publication.

Deutsche Bank was founded in 1870 by Adelbert Delbrück (a private banker) and Ludwig Bamberger (a politician and currency expert). In the beginning it focused on foreign trade and was involved in the development of Germany's electrical, engineering, iron, and steel industries.

Soon after its establishment a period of rapid expansion followed through opening branches outside Germany. Shanghai and Yokohama in 1872 were the first to be established, followed by the London branch one year later (1873). Deutsche Bank expanded in the United States, too. In the beginning this was performed via partnerships, and in 1979 it established its first branch under its own name in New York. The solid base generated in Germany was a major support for the bank's ability to finance its foreign businesses. Deutsche Bank started buying other major banks as early as 1876. In the 1890s the bank formed alliances with banks in various places in Germany, strengthening its presence in various industrial regions of the country.

Continuing domestic investments, Deutsche Bank merged with Disconto-Gesellschaft in 1929, which was the largest merger in the German banking industry. In the 1930s the bank entered Hitler's period and it became a tool of the Nazi state. That period was almost catastrophic for the bank. In 1947 it was divided into 10 smaller banks, which merged in 1957, establishing Deutsche Bank again. In the 1980s and 1990s Deutsche Bank managed to build a worldwide network of branches. It was also involved in acquisitions and at the same time established subsidiaries around the world. Deutsche Bank continued its worldwide expansion strategy in the new millennium. Regarding the United States, in 2001 it was listed on the New York Stock Exchange (NYSE). In Europe, it acquired Rued Blass & Cie (2002) and Russian investment bank United Financial Group (2006) so as to support its private banking business. However, it did not neglect domestic investments, since it acquired Noris Bank and Berliner Bank. Such a move strengthened its retail business in Germany. The investments were not limited to that. There were also expansion moves into the markets of China, India, and Russia.

Deutsche Bank offers its services not only to corporate and institutional customers but also to private and business clients. Grouping the services offered, the bank can be divided into two divisions. First, the Corporate and Investment Bank Group Division deals with capital markets. It involves the origination, sales, and trading of capital markets products including debt, equity, and other securities, together with its corporate advisory, corporate lending, and transaction banking businesses. This division is further subdivided into:

• Corporate Banking and Securities: its main services are the origination, sales, and trading of capital market products, corporate advisory and corporate financing businesses, asset finance and leasing, and commercial real estate.
• Global Transaction Banking: its main services are trade finance, cash management, trust, and security.

On the other hand, the Private Clients and Asset Management Division offers investment management [Page 505]services to both private and institutional clients together. It services private individuals and small/medium-sized businesses with traditional banking activities. It is further subdivided

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