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Deutsche History

Deutsche Bank from 1870 until today Rooted in – global from the beginning History

Under the Empire 1870 –1918

When the idea of founding Deutsche Bank became reality in 1870, banking was in the throes of radical change: industrialisation meant that industry's financing needs were growing and the highly traditional banking sector was going to have to move with the times.

the Prussian government granted it a in , , Yokohama, banking license. This was the last and . license issued to a joint-stock bank in . The license requirement was The founders, all of them bankers, abolished that same year. showed vision in choosing the name Deutsche Bank even before Germany The statute placed great emphasis had been established as a nation- on foreign business: "The object of state. However, little did they suspect the company is to transact banking that they were creating tough business of all kinds, in particular to competition for themselves. In the promote and facilitate trade long run, financing foreign trade was Adelbert Delbrück relations between Germany, other not viable on its own, so the newly- European countries and overseas founded bank was soon on the First share certificate of Deutsche Bank In , a number of private bankers markets." The direct aim was to lookout for other areas of business. were open to new ideas. Their leading challenge the hegemony of British In the very year of its foundation, lights were Adelbert Delbrück and , which continued to dominate Deutsche Bank began to accept , both regarded as the financing of German foreign deposits in cash. Nowadays that sounds the "true founders" of Deutsche Bank. trade. From the outset, international self-evident, but for the German banking The bank's statute was adopted on business was built up steadily. world it was little short of revolutionary. January 22, 1870, and a little under Between 1871 and 1873 Deutsche The bank needed a solid base and two months later, on March 10, 1870, Bank opened five branches:

1870 1871 – 72 1873 1876 1883 1886 1887 1888 Deutsche Bank First domestic branches Opening of the London Acquisition of Participation in Foundation of Deutsche Participation in the The Turkish government is founded in Berlin in Bremen and Hamburg branch, Deutsche Bank's Berliner Bank-Verein Northern Pacific Ueberseeische Bank founding of AEG grants a Deutsche Bank- most important foreign and Deutsche Union- Railroad Company (electrical engineering led consortium the first Opening of the First foreign branches in branch until its closure Bank in the US industry) concession to build and run branch Shanghai and Yokohama on the beginning of the the Anatolian Railway, in 1872 First World War in 1914 linking and Ankara

2 History Deutsche Bank found it in the deposit-taking business. The bank remained there for just over a Georg von , one of the two year and then moved, together with original members of the Management around fifty staff, to premises very near Board and a leading light in the history the Berlin Stock Exchange. In 1876, of Deutsche Bank, realised this from construction began on new head-office the start. By promoting this area of buildings at the junction of three streets – business he not only created a broad Behren Strasse, Mauer Strasse and capital base for the company; he also Französische Strasse. The view of the helped deposit-taking business to two connecting "bridges" was to become become firmly established in Germany. something of a trademark for the bank.

When Deutsche Bank started Deutsche Bank's head office in Berlin, around 1910 business on April 9, 1870 its first office was at 21 Französische Strasse in Berlin, on the first floor of a rather ordinary-looking building.

First premises at Französische Straße, Berlin

1889 1890 1892 1894 1897 1898 1901 1903 Participation in the Participation in the Opening of Participation in the Deutsche Bank sup- Participation in the Opening of branches Concession to build founding of Deutsch- founding of Mannes- branch founding of Banca ports the conversion of Shantung Railway in and the Baghdad Railway Asiatische Bank mannröhren-Werke Commerciale Italiana Siemens & Halske into Company and Shantung Acquisition of (steel pipe industry) a joint-stock company Mining Company in Romanian oil company Northern Steaua Romana

Deutsche Bank History 3 Deutsche Bank History

Deutsche Bank's early decades were a at Deutsche Bank. The bank formed Its operations were focused on period of rapid expansion; the bank had alliances with large regional banks, Argentina, Brazil and Chile. Three an eye for good business prospects and giving itself an entrée into Germany's years later Deutsch-Asiatische Bank, a sound feel for risk. Issuing business main industrial regions. Joint ventures headquartered in Shanghai, was began to grow in importance in the were symptomatic of the concentration established with the backing of a 1880s, and in the 1890s it really took off. then underway in the German banking consortium of the leading German And it meant that the capital market industry. For Deutsche Bank, domestic banks. In Africa, Deutsche Bank’s could be tapped for investments in new branches of its own were still something activities were via stakes in banks and industrial and infrastructure enterprises. of a rarity at the time; the Frankfurt railways. The bank played a major part in the branch dated from 1886 and the Munich development of Germany's electrical- branch from 1892, while further When in spring 1914 the "Frankfurter engineering industry, but it also gained a branches were established in Dresden Zeitung" told its readers that Deutsche strong foothold in chemicals and steel. A and Leipzig in 1901. Bank was "the biggest bank in the solid base in Germany permitted the In addition, the bank soon recognised world", the claim marked not only the Deutsche Bank branch offices and holdings in 1909 financing of business abroad, which in the value of specialist institutions for climax but the end of an era. The First some cases kept the bank occupied for the promotion of foreign business, World War brought the first phase of years, the best-known example being concentrating on Latin America and the globalisation of the world economy the Baghdad Railway. Asia. Deutsche Ueberseeische Bank to an end and forced Deutsche Bank to The second half of the 1890s saw the was established as the sole subsidiary concentrate on its activities in Germany beginning of a new period of expansion in 1886. for a long period.

1905-06 1909 –10 1914 1916 1917 Opening of branches Opening of branches Acquisition of Bergisch Participation Merger with Schlesischer in and in Istanbul and Märkische Bank in Elber- in the Deutsche Ozean- Bankverein and Augsburg Brussels feld and its branches in Reederei and the Norddeutsche the Rhineland-Westpha- Mitropa lia industrial region

4 History Deutsche Bank In the Weimar Republic 1919 –1932

After the First World War the banks had to come to terms with a very different world. Before business was able to recover, Germany was hit by inflation.

There was new business, some of Increasing costs and the trend For many years, it would not be possible which was to have an impact for a long towards consolidation throughout the to return to circumstances that might in time to come. The bank played a industry were the main reasons for some ways have been considered significant role in the establishment of the merger. It was the most reminiscent of the 'golden age' before the film production company, UFA, and significant merger in the German the First World War. in the merger of Daimler and Benz. financial world for decades, and it came at just the right time to help counteract the unfolding world economic and banking crisis. The consolidation of the German At the peak of inflation in 1923: banking industry peaked in 1929 banknote for 20 billion marks when Deutsche Bank merged with its In terms of its political impact, that crisis most powerful rival, Disconto- was the most disastrous economic The immediate post-war period was a Gesellschaft. For eight years what event of the century. The shortage of time of liquidations and acquisitions. was easily Germany's largest bank liquidity that paralyzed the banks was The bank had lost most of its foreign operated under a dual name – fuelled by a combination of short-term investments and branches. In Deutsche Bank und Disconto- foreign debt and borrowers no longer Merger of „Deutsche Bank und Germany, by contrast, the branch Gesellschaft – before reverting to its able to pay their debts, while the Disconto­Gesellschaft“ 1929 network was expanded considerably, former, rather more memorable inflexibility of the state exacerbated the mainly via mergers with partner name in 1937. situation. regional banks.

1920 1923 1924 – 25 1926 1927 1928 1929 1931–32 Acquisition of Hyperinflation in Acquisition of Participation in the Acquisition of Acquisition of Merger of Deutsche Following the banking Hannoversche Bank, Germany Württembergische founding of Lübecker Privatbank Hildesheimer Bank Bank and Disconto-Ge- crisis, Deutsche Bank Braunschweiger Vereinsbank in and in the merger of sellschaft; the company und Disconto- Privatbank and Stuttgart and Essener Daimler Motoren-Gesell- is now called 'Deutsche Gesellschaft has to Privatbank zu Gotha Credit-Anstalt schaft, Stuttgart, with Bank und Disconto- deposit one-third of its Benz & Cie., Mannheim, Gesellschaft' share capital with the to form Daimler-Benz state-owned Golddiskontbank

Deutsche Bank History 5 Deutsche Bank History

In the Third Reich 1933 –1945

Hitler's seizure of power in 1933 marked the beginning of the darkest chapter in the history of Deutsche Bank. By 1945, after twelve years of National-Socialist rule and six years of war, not only was the bank itself on the brink of the abyss; it had also allowed itself to become a tool of the Nazi state.

the racist goals of the regime from the from the business life of the nation gave a semblance of legality to what outset, putting up no resistance; the reached its peak in 1938, when following was in effect robbery by the state. No feeling of impotence and feebleness a series of laws and decrees were one offered any direct resistance to the instilled in them by the aftermath of the forbidden to indulge in any kind of new Nazi legislation; in fact, to do so 1931 banking crisis and the anti-bank economic activity. By the end of 1938, would have been extremely dangerous, ideology of leading Nazis was simply too Deutsche Bank had been involved as an as witnessed by the example of two great. Adaptation and a willingness to intermediary and lender in at least 363 Deutsche Bank directors who were compromise were in their view the order cases of 'Aryanisation'. executed in 1943 simply for voicing of the day. For instance, by 1934 the "defeatist" remarks. three members of the bank’s When in 1938 the National-Socialist Management Board whom the new government began systematically to Even before the Second World War, government defined as Jews had been monitor and freeze Jewish assets, Deutsche Bank used the aggressive banished from this body. Only on the Deutsche Bank's Jewish customers expansion of the into Newsletter of the National Socialist Working Supervisory Board was a Jewish were affected as much as those of all Austria and Czechoslovakia in order to Organization for Deutsche Bank and Disconto colleague tolerated as late as 1938. other banks. By the time the war open new branches in those areas and Gesellschaft ended, almost all account assets and acquire holdings in banks already What had begun with the dismissal of deposits held by Jewish customers operating there. Once the War had Although its leading representatives Jewish staff soon continued with the had been transferred to the German commenced, the same kind of business scarcely agreed with the ideology of so-called 'Aryanisation' of Jewish firms. Reich. This exercise in dispossession expansion was pursued in the occupied National Socialism, they complied with This ousting of the Jewish population proceeded under cover of a seamless countries of western and south-eastern panoply of laws and ordinances that Europe.

1933 – 34 1936 1937 1938 1939 – 40 1941 1942 1942 – 43 Jewish members Oscar The reprivatisation of The company's 'Aryanisations' reach Opening of branches Participation in Bank- Majority holding in Closure (due to war) of Wassermann, Theodor the share capital of name reverts to their peak – Deutsche in annexed territories verein, Belgrade, and Creditanstalt-Bank- 82 branches and 54 Frank and Georg Deutsche Bank und 'Deutsche Bank' Bank has been involved Bankverein für verein, Vienna sub-branches Solmssen are forced to Disconto-Gesellschaft in 363 of them Kroatien, Zagreb resign from the is completed Acquisition of the Management Board Sudeten-German branches of Böhmische Union-Bank

6 History Deutsche Bank As a bank with international Research by Historical connections and a branch of its own Commission also found that the Kato- in neutral Turkey, in the period wice branch and the sub-branches under between 1942 and 1944 Deutsche it had granted loans to construction Bank was also involved in the German firms working at Auschwitz, where they Reich's gold transactions. During were engaged in building the IG-Farben those years, Deutsche Bank factory and the concentration camp. purchased 4,446 kg of gold from the Reichsbank, selling it on in Istanbul. Deutsche Bank acknowledges its As we now know from the findings of ethical and moral responsibility. That is the independent Historical why it was not only involved in the Commission Appointed to Examine Deutsche Bank Katowice branch foundation set up jointly by German the History of Deutsche Bank in the business and the federal government, Period of National Socialism, at least "Remembrance, Responsibility and the 744 kg of that gold came from Future"; it is also making every effort to Holocaust victims. However, no have its own past fully and critically crystal-clear answer could be found to reappraised. the question of whether the bank was aware of the origin of that gold.

1945 1939 – 45 Closure of Deutsche 1,299 active and Bank head office in retired employees Berlin and of all were killed during branches in the Soviet- fighting and in occupied zone concentration camps

Deutsche Bank History 7 Deutsche Bank History

Reconstruction 1946 –1957

In 1945, after 75 years in business, Deutsche Bank was on the verge of ruin.

or allowed them to remain in operation in Frankfurt and Munich, and at regional level. In 1947-48, Deutsche Norddeutsche Bank in Hamburg. In Bank was broken up into ten banks, 1957 the three merged to form thereby briefly reviving at least the Deutsche Bank once again. names of some banks that had disappeared in mergers many years before. Banking under the name “Deutsche Bank” was henceforth forbidden.

The economic downsides of this fragmentation soon became tangible. Deutsche Bank's head office in Frankfurt Following the formation of the Federal Damaged Deutsche Bank's head office in Berlin Republic ("", as it was commonly called), the bank was able to regroup in two stages, chiefly thanks to The post-war period proved to be the the efforts of . In toughest in its history. The occupying for- 1952 an interim solution was reached, ces either nationalised all banks – as hap- with Rheinisch-Westfälische Bank being Postwar logos of Deutsche Bank's pened in the Soviet zone, for example – set up in Düsseldorf, Süddeutsche Bank successor institutions

1946 – 47 1947 – 48 1949 1952 1953 1956 1957 The American military In the Western zones of In , The successor institu- The London Debt Foundation of DWS Merger of the three government (OMGUS) occupation, Deutsche Berliner Disconto tions are combined to Agreement – (mutual fund company) successor institutions to investigates Deutsche Bank is split into ten Bank is established form three joint-stock negotiated by the form Deutsche Bank AG, a Bank autonomous as the successor companies: subsequent Spokesman joint-stock company with institutions institution to Norddeutsche Bank, of the Management its registered office in Deutsche Bank Rheinisch-Westfälische Board of Deutsche Frankfurt Bank and Süddeutsche Bank – restores the Bank creditworthiness of the Federal Republic of 8 History Deutsche Bank Germany Internationalisation 1958 –1988

After Deutsche Bank was re-established it succeeded in readopting its traditional role in international financing and entering new lines of business in Germany.

The post-war period was a time of cru- flotation of a foreign-currency bond for cial decisions concerning banking policy. the Anglo-American Corporation of Product policy played a relatively minor South Africa, with which Deutsche Bank role. This changed at the end of the reopened the German bond market to 1950s when the bank ventured into foreign companies. general retail banking. Within a couple of years the number of private clients in- International business grew far more creased immensely, corresponding with important in the 1970s. Deutsche Bank strong growth in the domestic branch began to take shape as a global group. network. New branches abroad supported this development. The evolution of financial markets, technological progress and the acquisition of major banks in Italy, Foreign bond for the Anglo-American Corporation of South Africa Spain, the UK, and the New logo of Deutsche Bank have all meant that Deutsche Bank has International issuing business became changed more in the last decades than more important as Germany moved in the preceding century. from being a debtor to being a creditor nation. A major milestone was the 1958 Bank advertising in 1960

1958 1959 1963 1970 1973 1974 1976 – 79 1986 – 88 On behalf of Anglo- Deutsche Bank enters Start of “club banking” Foundation of Com- Representative Launch of Deutsche Branches in London, Acquisition of Banca American Corporation of the retail banking through the foundation pagnie Financière de la offices open in Bank's current logo , , Brussels, d'America e d'Italia South Africa, Deutsche business by introducing of the European Deutsche Bank in Lux- London and , New , Expansion in twelve Bank floats what is the small personal loans Advisory Committee, embourg, the , , countries of the Asian first foreign bond on the from which EBIC precursor of today's and Madrid Pacific region, as well as German capital market emerges in 1970 Deutsche Bank in Brazil, Canada, Portu- since 1914 gal and the

Deutsche Bank History 9 Deutsche Bank History

Becoming a global player 1989 until now

The nineties were marked by additional acquisitions and the establishment of subsidiaries abroad, in no small part against the background of political transformations in Eastern Europe.

In the following years international accounted for an ever-increasing share of Deutsche Bank’s business. Globalisation brought the capital markets even closer together. The liberalisation of economic areas and innovative technologies opened up new growth opportunities. Since then Asia in particular has seen new markets develop at breakneck speed.

Deutsche Bank – a global player Acquisition of Morgan Grenfell in 1989 Completion of acquisition of with 'closing day' on June 4, 1999

Starting with the acquisition of the UK opened the American market up to merchant bank Morgan Grenfell in Deutsche Bank. 1989 global expansion culminated in the acquisition of the New York investment bank Bankers Trust, which

1989 1990 1991 1993 1995 1998 1999 2001 Acquisition of the UK’s Deutsche Bank begins All US activities Acquisition of Banco Deutsche Bank Polska Acquisition of Crédit Acquisition and integra- Deutsche Bank's share Morgan Grenfell Group to operate in the for- merged under the de Madrid and Banca founded in Warsaw Lyonnais Belgium tion of Bankers Trust in is listed on the New mer by holding company Popolare di Lecco the US York Stock Exchange Bank 24, a branchless founding Deutsche Deutsche Bank North bank, commences Retail and small- Bank-Kreditbank America Holding operations business customers Representative are transferred to offices in , Deutsche Bank 24 Warsaw and

10 History Deutsche Bank In 2008 Deutsche Bank had to Deutsche Bank was founded almost overcome the most severe global 150 years ago as a partner to financial crisis since the Second German companies for their global World War. In subsequent years banking needs. several cases of rule breaches and misconduct were discovered that Today it is a leading European bank damaged the company’s reputation. with global reach. Deutsche Bank In early 2017 the Management Board provides commercial and issued a public apology for serious investment banking, retail banking, errors, for example in its US transaction banking and asset and products and Asia – a growth market for Deutsche Bank mortgage business activities between 2005 and 2007. services.

The repercussions make it The Deutsche Bank twin towers in Frankfurt absolutely essential to implement changes over the long-term. The aim is to make the bank a pillar of society once again.

2002 2003 2004 2006 2010 2018 Takeover of Scudder Acqusition of the Opening of a branch Takeovers of Berliner Acquisition of Initial Public Offering Investments Swiss office in Bank and Postbank and Sal. of DWS Rued, Blass & Cie Oppenheim in Acquisition of the Branch openings in Germany as well as DB Privat- und Dubai and Riyadh Russian investment parts of ABN AMRO Firmenkundenbank AG bank United Financial in the Netherlands created from the merger of Group (completed in Postbank and Deutsche 2006) Bank’s private and commercial clients business Deutsche Bank History 11