Introduction to Josef Ackermann
Let me introduce you to Josef Ackermann, a Swiss banker who held the roles of CEO and chairman at Deutsche Bank from 2002 to 2012, and later chaired the Bank of Cyprus from 2014 to 2019. He also participated in the Group of Thirty, a Washington-based assembly of international economists and financiers focused on global economic and financial matters.
Key Takeaways
You should note that Josef Ackermann is recognized as a Swiss banker who led Deutsche Bank as CEO and chairman. He also served as chairman of the Bank of Cyprus. Additionally, he was part of the Group of Thirty, which acts as a Washington-based financial advisory board.
Early Life and Education
Josef Ackermann was born on February 7, 1948, in Walenstadt, Canton of St. Gallen, Switzerland. He studied economics and social sciences at the University of St. Gallen, where he obtained a Ph.D. in economics. Starting his career in 1977 as a corporate banker at Credit Suisse, he spent 25 years there, advancing to general director and board member positions.
Career at Deutsche Bank
In 2002, Ackermann took over as CEO of Deutsche Bank, with the mission to establish it as a global investment bank. He drove multiple mergers, enhanced global operations, implemented a shareholder-oriented management approach, and shifted emphasis toward investment banking. During his leadership, the bank faced U.S. Justice Department investigations over investments in subprime mortgages that fueled the 2008 Great Recession. The probes revealed that Deutsche Bank misled investors on loans supporting $1.4 billion in securities from 2007, resulting in substantial losses as per the fraud complaint.
A subprime mortgage is a risky loan extended to those with low credit scores. Concurrently, as chairman of the Institute of International Finance (IIF), the worldwide banking association, Ackermann played a key role in addressing the crisis and the subsequent Eurozone debt issues. His compensation reached €9.6 million in 2009 and €8.9 million in 2010, but Deutsche Bank later sought to recover tens of millions in bonuses from him and other ex-CEOs amid U.S. sanctions. He stepped down from Deutsche Bank in 2012.
Notable Accomplishments
In 2014, Ackermann became chairman of the Bank of Cyprus, Cyprus's largest bank, which was struggling with toxic assets and balance sheet problems; he guided it until 2019. He has served on boards including Bayer, Deutsche Lufthansa, Linde, Mannesmann, Siemens, Zurich Financial Services, and Royal Dutch Shell. Ackermann is a member of the Group of Thirty (G30), founded in 1978 as an independent entity of economic and financial leaders from public, private, and academic sectors, aimed at exploring global economic and financial topics.
Business Relationship with Donald Trump
Donald Trump depended on Deutsche Bank for funding, and Ackermann reportedly approved loans to Trump despite defaults in 2004 and 2008. However, Ackermann stated he did not remember his role in those approvals.
Academic Involvement
Ackermann has served as a visiting professor of finance at the London School of Economics and Johann Wolfgang Goethe University.
Legal Accusations
In 2004, Ackermann was cleared of charges alleging he squandered shareholders' funds while on the board of Mannesmann AG, the German phone company. He was acquitted of breach of trust in what was Germany's initial attempt to prosecute managers for excessive bonuses.
The Bottom Line
To sum it up, Josef Ackermann is a Swiss banker who navigated Deutsche Bank as CEO and chairman through the 2008 recession and subprime mortgage fallout. He took the chairmanship of the Bank of Cyprus in 2014. Ackermann has been on boards of several corporations, taught at two universities, and advised via the Group of Thirty.
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