Colm Kelleher has the right resume for the world’s largest wealth manager
Globalization is very present in the boards of directors of European investment banks. UBS and deutsche Bank have appointed an Irishman and a Dutchman as their respective new presidents. The choice of the Swiss bank, Colm Kelleher, formerly chaired by Morgan Stanley, meets more requirements than the choice of the German bank, Alexander Wynaendts, formerly head of the insurance company Aegon.
Kelleher has the right resume for the world’s largest wealth manager. He played an essential role in the Wall Street company’s strategic shift toward that business after the 2008 crisis. His last role was getting private banking and business developers to work together, a key task for UBS. Doing better could reduce the bank’s $ 60 billion valuation difference with Morgan Stanley, valued at 2.4 times its future tangible book value, a multiple comfortably double that of UBS.
Wynaendts is a less clear choice for Deutsche. The Dutchman’s last banking job was completed in 1997. It is true that he has been on Citigroup’s board since 2019, and insurers are important counterparts for fixed-income operators, one of the German group’s most important businesses. Still, Wynaendts will be a newcomer to the German financial circle. Furthermore, Deutsche’s domestic market is more important, since last year it brought in almost twice as much revenue as the American markets. One of the key issues facing Deutsche is to reactivate the merger with the state bank Commerzbank. The country’s likely next chancellor, Olaf Scholz, was heavily involved in the latest attempt. Deutsche CEO Christian Sewing and Vice President Norbert Winkeljohann will have to deal with the hassle of government relations.
One of the reasons for choosing Wynaendts was his M&A experience at Aegon, who bought and sold companies during his tenure. A steep learning curve awaits you in Frankfurt.