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The Bankers Trust is a historic American banking organisation that was acquired by Deutsche Bank in 1998. For other uses, see Bank (disambiguation). ...
Deutsche Bank AG NYSE: DB (German for German Bank) is a multinational bank operating worldwide and employing more than 67,500 people (Dec. ...
It was originally set up when banks could not perform trust company services. A consortium of banks all invested in a new trust company, which was called Bankers Trust, so that they could refer clients to that company knowing that Bankers Trust would not try and poach their customer. A trust company has been referred to as a near-bank; while technically it differs from a bank in mandate and services offered, it also provides banking services such as chequing accounts, savings and loans, investments and credit cards. ...
Under the management of Charlie Sanford, Bankers Trust became a leader in the nascent derivatives business in the early 1990s. Having de-emphasized traditional loans in favor of trading, the bank became an acknowledged leader in risk management. Lacking the boardroom contacts of its larger rivals, notably J. P. Morgan, BT attempted to make a virtue of necessity by specializing in trading and in product innovation. Charles Steadman Charlie Sanford was and American businessman that served as Chairman of the Board and Chief Executive Officer of Bankers Trust. ...
JPMorgan Chase & Co. ...
For all its prowess in managing the risks in the trading room, however, the bank suffered irreparable reputational damage in early 1994, when some complex derivative transactions caused large losses for some major corporate clients. Two of these - Gibson Greetings and Proctor & Gamble (P&G) - successfully sued BT, asserting that they had not been informed of or [in the latter case] had been unable to understand the risks involved. The bank's row with P&G made the front page of major US magazines. This was worsened when several Bankers Trust bankers were caught on tape remarking that their client [Gibson Greetings] would not be able to understand what they were doing. The resulting reputational damage, combined with the lack of a natural client base and the inept management of new CEO Frank Newman, eventually proved fatal. Procter & Gamble Co. ...
In 1997, Bankers Trust acquired Alex. Brown & Sons, founded in 1800 and a public corporation since 1986, in an attempt to grow its investment banking business. Alex. ...
The bank suffered major losses in the summer of 1998. While the Russia's default was officially blamed for them, many insiders knew that the new overly aggressive stance in lending spearheaded by Newman was indeed at the root of the bank's demise.
In November 1998, Deutsche Bank agreed to purchase Bankers Trust for $9.8 billion; the purchase was finalized on June 4, 1999. Newman received $110 million in severance.
In Australia, Bankers Trust was acquired by Westpac from Deutsche Bank and uses the name BT Financial Group. The Trust and Custody business that Deutsche Bank aquired from Bankers Trust was sold to State Street two years later. Westpac Banking Corporation ASX: WBC NZX: WBC, usually called Westpac, is the fourth largest bank in Australasia, after the National Australia Bank, Commonwealth Bank and ANZ Bank and one of the largest banks in the South Pacific. ...
Notable former employees
Business Jeff Bezos on the cover of TIME as Person of the Year 1999 Jeffrey Preston Bezos (born January 12, 1964) is the president, chief executive officer, and chairman of the board of Amazon. ...
Joaquin Avila is a Managing Director of the global private equity firm, Carlyle Group, where he is responsible for researching and discovering opportunities in the field of buyout investments. ...
The Carlyle Group is a Washington, D.C. based global private equity investment firm with more than USD$40 billion of equity capital under management. ...
Henry P. Davison (Source: www. ...
Richard Farleigh (born 1960) is an Australian private investor. ...
Nassim Nicholas Taleb (b. ...
Albert Henry Wiggin, Time magazine cover August 24, 1931 Albert Henry Wiggin (February 21, 1868–May 21, 1951) was an American banker. ...
The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. ...
Other Maxim (Max) Dlugy is a Grandmaster of chess. ...
The title Grandmaster is awarded to world-class chess masters by the world chess organization FIDE. Apart from World Champion, Grandmaster is the highest title a chess player can attain. ...
Jack H. Jacobs (b. ...
Frank Saishi Li (born August 17, 1958 in Chongqing, China) is the co-founder of Spectrum-Prime Solutions, L.P. Frank Li specializes in quantitative infrastructure, analytic modeling, trading system construction, and risk measurement and management. ...
Charlie Rose Charles Petee Rose Jr. ...
External links - BT Financial Group website
- "Acquisition of Bankers Trust Successfully Closed" - 1999 Deutsche Bank press release
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