I have started reading "Banking on Global Markets: Deutsche Bank and the United States, 1870 to the Present" by Christopher Kobrak. To say the least, the book is really fascinating because I think it may demystify the working of powerful banks to some extent. Till now I was reading more about relatively idealistic management literature and theories, where ability, self-awareness and vision are the defining factors. This book, however, brings out the aristocracy of pull rather beautifully. I don't know how much of it has changed over the years, but from about 1870 to well into 1914 (till the point that I have read) banking was the domain of a few rich and powerful banking dynasties like Rockfellar, Morgan, Speyer et al. Business was done more on trust and personal bonds rather than anything else. Level-4 leaders or abject self-promoters were the only other people who could hope for success in these transactions. The writer mentions that the Banking Dynasties operated somewhat like European Royal Aristocracies. And they had a frighteningly strong hold on businesses and economics, something that I reckon continues till date.
A detailed, thoroughly researched and well-written history of Deutsche Bank wrt US also serves as an interesting read for anybody who hopes to do business in a cross-cultural environment with unpredictable laws. In many respects, by the time 1900s started, US was pretty much at the juncture where China is today (and US is where UK was then!). There are a few uncanny similarities: the banks find a rapidly growing economy too hot to ignore but do not know how to best deal with the unpredictable regulatory environment. I am really positive about this book and I hope it will provide some wonderful insights into the inner workings of the best financial institutions of the world.
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