No Risk, No Gain?
Josef Ackermann speaks to a record number of dinner attendees

“Taking risks” was a major theme of Deutsche Bank CEO Josef Ackermann’s speech at this year’s Arthur F. Burns dinner in Berlin. On home ground in the Berlin Office of Deutsche Bank and on the eve of Barack Obama’s visit to Germany, Ackermann analyzed the global financial crisis as one of the biggest challenges in politics, the economy and the media. Ackermann explained how too much risk-taking resulted in disastrous consequences for the world economy and outlined steps needed to overcome the current depression. He admitted that he had a road to Damascus experience during the crisis. But his pledge for more international as well as internal regulation did not mean that he had turned into a fearful man. “If you avoid all risks there is soon no risk to avoid,” concluded Ackermann, and it sounded like a personal confession.

Deutsche Bank CEO Josef Ackermann

In Germany, the Swiss-born Ackermann figures as one of the most interesting faces in the financial world. On the one hand, he is one of the most influential German managers. His change of strategy empowered Deutsche Bank to remain among the top players in the world. During the financial crisis, Ackermann has promised that his bank will not need state money. As a professor at the London School of Economics and Chairman of the Institute of International Finance (IIF), he enjoys an esteemed reputation at the international level. On the other hand, investment banking was in the core of his strategy. His 25% return-on-equity target for Deutsche Bank has caused critical reactions from parts of the German public.

Thus it was no surprise that his dinner speech inspired discussions among his audience. “You cannot take it for granted that a banker exposes himself to questions in these times,” commented Mark Kleber (Burns 1999) from ARD radio, but also said he was somewhat disappointed that he heard “no single word of self-criticism.” Max von Klitzing (Burns 2004) promised that he and his colleagues will monitor if the CEO’s analysis will transfer into actions. Frank Freiling, German coordinator and founder of the Burns program, stressed the “fascination” with Ackermann among German media—proven by the fact that half of all alumni attended the dinner. This marks a new record in the history of the Berlin Burns dinner.

Carter Dougherty (Burns 1998) from the German bureau of The New York Times and International Herald Tribune raised the question whether bankers and journalists share the same loss of status within society. Josef Ackermann believes in the importance of both professions. For him, strong banks remain the heart of the economy and well-educated journalists are important to explain complicated issues. But he accused some journalists of just writing what their peers want to hear. “Do have the courage to write what you really think,” said Ackermann, recommending more self-confidence.

Burns alumni Cherno Jobatey (1997) and Elisabeth Niejahr (1992) with Josef Ackermann at the June alumni dinner in Berlin.

After the main course, this year’s Arthur F. Burns prizes were awarded. Gregor Peter Schmitz from the Washington office of Spiegel Online was praised by the jury for his article “Obama’s Dream.” “When I started my Burns Fellowship in 1997, I considered U.S. journalists to be the greatest in the world,” he remembered. “This hasn’t changed much.”  The jury praised Andrew Curry’s story about the secret legacy of the East German police as the most outstanding contribution by a U.S. journalist. Curry, who lives and works in Berlin, expressed his fascination with the important role historical analysis plays in German journalism. Niklas Maak from Frankfurter Allgemeine Sonntagszeitung won a Burns prize for his analysis of the architecture of the new American Embassy in Berlin. He thanked his wife for allowing him to write the article at home between five p.m. in the afternoon and three a.m. in the morning. (Please read more about the Burns awardees in the following story).

A long night with good drinks and interesting conversation followed. Some of us, after very little sleep, headed to the five o’clock morning train to Dresden. We arrived just in time for the press conference of the U.S. president and the German chancellor. When Barack Obama declared Germany and the U.S. to be “close friends” and Angela Merkel praised the strong cooperation between the two countries, the political leaders reflected the good transatlantic understanding most Burns Fellows felt the evening before.

Robin Mishra (Burns 2004) is head of the Berlin bureau of the weekly Rheinischer Merkur. He has just published a book, How I learned to love politicians, about ways to strengthen Germans' enthusiasm for democracy.