BACKGROUND

Deutsche Bank is the largest bank in West Germany by a wide margin. Its $175 billion volume of business ranks it No. 22 in the world. It has 55,000 employees and 1,530 branches serving 7 million customers worldwide. Deutsche Bank was founded 117 years ago in Berlin. After World War II, the Allies shut down its Berlin headquarters, and all of its branches in the Soviet-occupation sector of Germany were closed. In 1952, the bank was broken up into three separate banking institutions, but five years later, these were re-merged into a single Deutsche Bank with headquarters in Frankfurt. About 62% of its business and 83% of its earnings in 1988 were in West Germany, underscoring the bank’s strong influence in the economy and reflecting its powerful industrial holdings. The value of these holdings are estimated at more than $7.35 billion, including a 28.1% share of Daimler-Benz, West Germany’s largest company. The bank has often taken controversial positions on major issues, including South Africa. Despite severe criticism, Deutsche Bank has declined to reduce its business there.