Cryan Says Deutsche Bank ‘Well Prepared’ for Brexit Outcomeby
Referendum will be ‘litmus test’ for capital markets, CEO says
Achleitner has called Brexit outcome an ‘economic disaster’
Deutsche Bank AG, which runs Europe’s biggest investment bank, is prepared for any outcome of the British referendum this week on whether to leave the European Union, said Chief Executive Officer John Cryan.
“The days around the referendum will be a litmus test for capital markets,” Cryan said at a conference in Berlin on Tuesday, adding that he’s in favor of the U.K. staying in the EU. “I can assure you that we at Deutsche Bank are well prepared for it. And I have great confidence that the central banks will also keep a close eye on market stability.”
The pound held its biggest two-day advance against the dollar in more than seven years and global stocks rallied as investors bet that momentum in the countdown to Thursday’s referendum was swinging in favor of “Remain.” Deutsche Bank Chairman Paul Achleitner said last week that Brexit would be “an economic disaster for the U.K.,” where the lender employs more than 8,000 people.
Bank leaders including JPMorgan Chase & Co.’s Jamie Dimon and HSBC Holdings Plc’s Stuart Gulliver have also issued cautions on a potential U.K. exit. Some executives have predicted market turbulence, long-term uncertainty for the U.K. and job cuts in London’s financial industry with firms shifting jobs elsewhere.
While latest opinion polls still herald a tight vote, betting odds and currency markets suggest that “Leave” has all the ground to make up. An index of bookmaker figures compiled by the Oddschecker survey put the probability of a vote to leave at 24.7 percent, down from 44.5 percent a week earlier.
Billionaire investor George Soros, Hong Kong’s richest man, Li Ka-shing, and soccer celebrity David Beckham have all rallied behind Prime Minister David Cameron’s efforts to keep the U.K. in the 28-nation EU, with the “Leave” campaign using concerns tied to immigration to lobby for an exit.
“There is clearly a very unhealthy concentration on the impact of migrants,” said Cryan, a British national who became sole CEO last month. “That people are coming into the country to usurp jobs, take away work from people who are already there -- that simply isn’t the case.”
Deutsche Bank rose for a third straight day, increasing 1.9 percent to 14.75 euros at 4:17 p.m. in Frankfurt. That helped pare losses this year to about 34 percent.