Anshu Jain, Deutsche Bank’s Co-Chief Executive said there was reluctance from investors to fund European banks, he does however expect a political resolution to the European debt crisis.
Jain said policy makers have done a good job in averting the risks of a deep recession.
However, he said this has come at a price as the global economy has now moved into “the second phase of the crisis–as the pressure moves from the private to the public sector.”
Jain, who is currently the head of corporate and investment bank and member of the management board of Deutsche Bank, was speaking at an event in Singapore.
Jain has been jointly appointed co-CEO along with Jurgen Fitschen, effective May 2012, as part a wide restructuring of the bank’s management in July. Deutsche Bank’s outgoing CEO, Josef Ackermann, will move to a position as chairman of the group’s supervisory board.
He said that countries are struggling to reach a political consensus to implement fiscal austerity mainly due to the potential social reaction.
He said there was also a reluctance on the part of stronger economies to support weaker countries in the absence of substantial economic reform and strong fiscal measures.
Singapour, September 14, 2011 (Dow Jones)