Deutsche Bank history

The bank’s statute was adopted on January 22, 1870, and a little under two months later, on March 10, 1870, the Prussian government granted it a banking license.

The founding of the Second German Reich in 1871 led to another important development: the thaler was replaced by the mark, a new currency based on gold.

In 1872 it opened a London branch, and capital stood at 15 million thalers.

During the financial crisis of 1873-75 it appeared that the entire economic system was on the verge of collapse; small shareholders as well as wealthy business people were ruined, and in Berlin alone nearly 50 banks filed for bankruptcy.

1876: Deutsche Union-Bank and Berliner Bankverein are acquired.

Gentle pressure from the Foreign Ministry played a part in the establishment of Deutsche Ueberseeische Bank in 1886 and the stake taken in the newly established Deutsch-Asiatische Bank three years later, but the success of those companies in showed that their existence made sound commercial sense.

In 1888, Deutsche Bank obtained a concession to build an east-west railway to open up Asiatic Turkey.

By the early years of the 20th century, the company had acquired interests in the Hannoversche Bank, the Oberrheinische Bank, and the Rheinische Creditbank, and in Italy, had participated in the 1894 founding of Banca Commerciale Italiana.

By 1899 it was able to offer to float, without help from other financial institutions, a 125 million mark loan for Prussia and, at the same time, a 75 million mark loan for the German Reich.

The continuity of bank operations was uninterrupted when von Siemens died in October, 1901.

When in spring 1914 the “Frankfurter Zeitung” told its readers that Deutsche Bank was “the biggest bank in the world”, the claim marked not only the climax but the end of an era.

Growth continued during the war with the 1917 purchase of the Schlesischer Bankverein, which was based in Breslau (which became Wroc;lPaw, Poland, following World War II).

More mergers were capped in 1929 by the amalgamation of Deutsche Bank with its older rival, DiscontoGesellschaft.

1933: The Nazis come to power in Germany, beginning the period of collaboration between Deutsche Bank and the Hitler regime; Jewish board members are ousted.

But by 1936, a significant percentage of industrial production had been switched to the manufacture of weapons and munitions and “re-employment” had become “re-armament.” Deutsche Bank supported the program through the purchase of government securities.

The new entity was called Deutsche Bank und Disconto-Gesellschaft, a name that was used until 1937 when it was changed back to simply Deutsche Bank.

When in 1938 the National-Socialist government began systematically tomonitor and freeze Jewish assets, Deutsche Bank’s Jewish customers were affected as much as those of all other banks.

No one offered any direct resistance to the new Nazi legislation; in fact, to do so would have been extremely dangerous, as witnessed by the example of two Deutsche Bank directors who were executed in 1943 simply for voicing “defeatist” remarks.

With the division of Germany into zones of occupation, and with Berlin in the Soviet zone, Deutsche Bank closed its head office there in 1945.

In 1947–48, Deutsche Bank was broken up into ten banks, thereby briefly reviving at least the names of some banks that had disappeared in mergers many years before.

Following Germany’s defeat in World War II, the Allied authorities, in 1948, ordered Deutsche Bank’s break-up into ten regional banks.

In 1952 an interim solution was reached, with Rheinisch-Westfälische Bank being set up in Düsseldorf, Süddeutsche Bank in Frankfurt and Munich, and Norddeutsche Bank in Hamburg.

In 1957 the three merged to form Deutsche Bank once again.

In 1959, the bank entered retail banking by introducing small personal loans.

When Hermann Abs retired in 1967, his place as spokesman was taken by Karl Klusen and Franz Heinrich Ulrich, who became co-spokesmen.

In 1968, Deutsche Bank joined the Netherlands' Amsterdam-Rotterdam Bank, Britain's Midland Bank, and Belgium's Societé Generale de Banque in founding the European-American Bank & Trust Company in New York.

100 Jahre Deutsche Bank, Frankfurt, Deutschen Bank, 1970.

And in 1972 Deutsche Bank founded Eurasbank (European Asian Bank) with members of the same consortium.

1979: First United States branch office opens in New York.

In 1980 Deutsche Bank was the only one of the West German Big Three banks to turn a healthy profit.

1986: Banca d'America e d'Italia S.p.A. is acquired.

By the end of 1988, the bank had approximately 7.2 million customers at 1,530 offices, more than 200 of them outside of West Germany.

Following Herrhausen’s assassination by terrorists on November 30, 1989, Hilmar Kopper became spokesman.

1990: German reunification leads Deutsche Bank to quickly reestablish itself in Eastern Germany.

1993: Banco de Madrid, a Spanish bank, is acquired.

Kantrow, Yvette, “John Rolls’ Grand Plan,” Investment Dealers’ Digest, August 29, 1994.

Kopper provoked additional controversy and public resentment when he called bills amounting to $33 million that the Schneider property group owed to construction workers 'peanuts.' Early in 1995 the former head of MG sued Deutsche Bank over who was responsible for MG's downfall.

Further innovation came to the domestic operations in 1996 when Deutsche Bank opened its first supermarket banks.

During 1997 Deutsche Bank sold its 48-branch operation in Argentina to BankBoston Corporation for about $255 million.

In November 1998 the company announced that it would acquire Bankers Trust Corp., a New York firm that specialized in underwriting securities for smaller companies and emerging markets.

On the other hand, the company was being bogged down by its inefficient retail banking operations, which accounted for only 5 percent of operating earnings in 1999.

2000: Deutsche Bank announces merger with archrival Dresdner Bank but the deal collapses.

But in March 2001 Allianz announced that it would acquire Dresdner.

These formed part of an overall growth strategy that also targeted a sustainable 25% return on equity, something the bank achieved in 2005.

The company’s headquarters, the Deutsche Bank Twin Towers building, was extensively renovated beginning in 2007.