Let me jump to the next conclusion, what does it mean to our industry? What does it mean to Deutsche Bank at the end of the day? We'll see here that on the right-hand side, the implications can be brought into various categories, some write it as pressure, unprofitability, which in turn, results in the need to address the way we use resources in order to maintain the sufficient level of profitability given the lack of growing on the revenue fund across the board.
We will also have to look at the need to look at fundamental business structures, i.e., we have to answer at the end of the day how, given this environment, we can still develop a client-centric model and retain an attractive level of profitability and, by doing so, maintain at any point in time adequate capitalization and liquidity levels.
To make matters worse, our industry is faced with an unprecedented negative judgment the public at large has arrived at. This is something that is of great concern to us because it's very obvious that our future is very much dependent on enjoying the trust and confidence of our client base, in particular, but of the public at large as well. Without that, you will see all sorts of sentiments coming up. And maybe particularly here in Germany, we are seeing witnesses for that attitude emerging every day. And we'll have to fight that development because it's going to be detrimental in the long run.
So against this environment, I think it's wise to anticipate that we'll see history repeating itself. Because whenever we had crisis in the past decades, we can go back to 1928, we have seen that the number of participants is shrinking dramatically. And at the same time, we see consolidation efforts that will produce winners and losers. The most recent examples, not to follow obviously, are in Japan. The Asian financial crisis has produced similar developments.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV