When Juergen Fitschen and Anshu Jain take over as co-chief executive officers of Deutsche Bank AG this week they’ll be reviving a tradition of dual leadership at Europe’s largest bank that ran from the 1960s to the 1980s.
Societe Generale SA , the French bank that had a record trading loss in 2008, is regaining favor with investors as a return to profit in Russia and fewer writedowns help narrow the earnings gap with BNP Paribas SA .
Societe Generale SA, which yesterday plunged 15 percent, is among banks being targeted by investors because of its perceived dependence on short-term funding, according to analysts at Royal Bank of Scotland Group Plc.
Deutsche Bank AG, continental Europe’s biggest bank, is drawing the most recommendations to buy its shares in six years after a 3 billion-euro ($3.9 billion) capital increase eased concern over its finances.
Europe’s banks, struggling amid a sovereign debt crisis, need a “major recapitalization” if the region is to avert disaster, said Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC.
France and Belgium’s decision to break up Dexia SA three years after bailing the lender out shows how European governments are being hampered in rescuing banks without jeopardizing sovereign credit ratings, analysts said.