Deutsche UBS Bank AG

Which mergers in Germany, Austria and Switzerland in the financial services sector post-Brexit will generate serious value for shareholders, stakeholder and Germany, Austria and Switzerland? The most promising is a merger between Deutsche Bank AG and UBS AG, into Deutsche UBS Bank AG. This should be DB's "Plan B". The now discussed potential merger of UBS Asset Management and DWS KG a. Aktien can only be the first, most logical step.

The beautiful aspect is the savings in headhunter fees, as there is a great collection of personalities at Board level and below that can be married in the combined entity. Axel Weber, ex- Deutsche Bundesbank, Chairman can be the combined Aufsichtsratsvorsitzender and allow Dr. Paul Achleitner to leave in grace and as a great bank builder in DACH (Germany, Austria and Switzerland). Martin Blessing, ex-CEO of Commerzbank AG, can be the combined Head of Retail and Mittelstandsbanking, I would join the Board as Wertpapiervorstand (Securities, Asset Management and Investment Banking Management Board Member).

If the headhunter story was not sexy enough for the younger crowd (below 55, LoL), then the combined entity IT playbook is dynamite, perhaps even nitro charged. Deutsche Bank AG will audit UBS AG's IT platform and transfer as many unit IT systems to UBS AG as possible, shutting down one obsolete DB IT system after another until the entire program from A to Z is checked off. This should add about 20 points to the combined Deutsche UBS Bank AG's common stock. (I should be charging serious Mulla for this advice. Am I just stupid, or an idealist on a Deutsche UBS Bank AG mission to the moon and back?) Well, I had better get 100,000 Deutsche UBS AG share units as a golden halo package upon signing my Vorstandsvertrag.

The combined bank would have a dual HQ in Zurich and Frankfurt. Switzerland could keep its major bank, but at the same time get out from under the weight/risk of the UBS balance sheet. The 19% equity capital requirement from the SNB (Swiss Central Bank) could be reduced to a level that allows the UBS portion of the combined bank to have substantially lower funding costs and be immediately more profitable. The Asset Management business of the combined bank would be HQ-ed in Zurich and managed by a Swiss leader.

The home market would be DACH. The combined bank would have a larger home market, the German part of the business could escape the low margin German retail banking trap and have much greater economies of scale. Cerberus would love this outcome for the 5 % of Deutsche Bank, which it owns, and according to marketing reports, wants to turbo-charge. Personnel at the second and third level of the combined organization could freely move in DACH.

The current weaknesses of both the German and Swiss part of the business would be mostly eliminated. There is NO downside risk to such a combination. The foreign (non-German and non-Swiss) branches would all be merged into one single, combined foreign branch network. The common subsidiaries and representative offices across business units would also merge. This would immediately create massive cost savings. Implantation cost and risk of this merger is minimal. It begs to be done.

Culturally, the the combined bank would speak German, the working language of Germany, Austria and Switzerland. This would match the Lufthansas business model with Lufthansa, Swiss Air, and Austrian Air. The Mittelstand in DACH would greatly profit from a DACH financial services structure and strategy. The insurance industry in DACH could be re-organizes along these lines as well as the newspaper, radio and TV industry. The retirement savings industry would move to this business model too over time. Other sectors could well follow. This would be a major boon to the DACH M&A business, which the combined bank should dominate and provide a major boost in competition with US Investment Banks and Asset Managers as these DACH business would converge to larger unit sizes and allow greater economies of scale.

I would anticipate no legal, regulatory or political resistance in Germany, Austria or Switzerland. Regulatory structures could be harmonized, substanially reducing legal, audit, compliance, credit control and overall risk management cost. Central banks could move to a common model for monetary and economic policy. Economies of scale would appear in every corner of DACH and allow new business models in the region that would not have been previously viable, drive down costs and friction in the system.

I could write endlessly about cost savings and economies of scale in every part of the business locally and globally, but I think the reader can easily imagine the scale and depth of economic advantages - without any downside risks in any part of the combined empire.

Let's just do it!

Now on a personal note due to many questions, like how did somebody as young as you pass the KWG 33 Prüfung and get to be a Member of the Board of Managing Directors of Deutsche Bank AG ?

I was not very smart or good looking, but I was at the right place at the right time, bilingual English-German, knew Deutsche Bank and war ein Kind der Deutschen Bank AG. Herr Dr. Herrhausen wurde in der Vorwoche von der RAF ermordet, und John A. Craven ist in den Deutsche Bank AG Vorstand eingetreten. Jemand mü?te sich um John Craven kümmern, ihn an die Hand nehmen und sich um seine Angelegenheiten im Deutsche Bank Konzern Fischteich bemühen.

Ich bekam dafür eine besondere Generalvollmacht für das Vorstandamt von John A. Craven vom Herrn Kopper und vom AR-Vorsitzenden ausgeh?ndigt.

John Craven war face-to-the-market und nahm am Dienstag an der Vorstandssitzung teil, die wir vor und nach besprochen haben. John Craven hat Morgan Grenfell Group plc in London geführt und diente in der Eigenschaft als Chief Sales Officer.

An seiner Hüfte fest verdrahtet habe ich als vollwertiges Deutsche Bank AG Vorstandsmitglied gedient, sein Büro in Frankfurt geführt, mich mit seinem/meinen Vorstandskollegen abgestimmt, Deutsche Bank intern, konzernweit Morgan Grenfell Interessen vertreten, auch gegenüber den Vorstandskollegen, sein Mercedes-Benz S 500 SEL ausgesucht (hellblau war total cool) und bin mit durch die Lande gefahren (war eigentlich verboten für die Fahrbereitschaft wegen RAF Gef?hrdung, but you have to cut a few safety corners in such a situation.)

Es gab mal Zoff vor der HV in Essen, weil Craven aus Tokio kommend das Auto mit mir in Essen stehen haben wollte. Die Fahrbereitschaft hat abgelehnt, und Herr Kopper hat mir rücki-zücki eine Generalvollmacht zur Vorstandswagenbestellung in seinem Namen ausgestellt. So mü?te ich mich nur mit "Kopper" am Telefon melden und die Jungs von der Fahrbereitschaft haben schon stramm gestanden.

You get use to this stuff after a while. Danach hatte ich keine Probleme mehr bei der Sonntagsfahrt. Es lebe der Deutschen Bank AG Vorgang.

Ich hatte natürlich einen Anrecht auf einen eigenen Vorstandswagen, aber John Craven und ich waren sparsame Leute, und haben uns das Auto geteilt; ich habe ihn ab und zu damit fahren lassen, aber er war faktisch nie da.

Herr Dr. Rolf-E. Breuer und Hilmar Kopper haben die KWG 33 Prüfung für mich getürkt und mich per Deutschen Bundesbankbeschlu? unter Zustimmung des Bundeskanzleramtes mit Fallschirm in den Vorstand der Deutschen Bank AG auf den Sessel landen lassen. Natürlich hat der Aufsichtsrat seine Zustimmung gegeben, die Gesch?ftsordnung für den Vorstand wurde ge?ndert, und ich war schon startklar. All in a days work.

Rondal Eric Powell, Rondal Eric Powell Consulting, Vero Beach, Florida/Frankfurt, Germany

Vorstandsassistent Büro Dr. Rolf-E. Breuer

Vorstandsassistent mit Generalvollmacht Büro Sir John A. Craven