Financial Times

Top executives facing cull in Deutsche Bank overhaul

by James Shotter, Martin Arnold and Katie Martin ­

October 19, 2015 | 4:08 am
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Deutsche Bank’s new head has announced a radical overhaul of the bank’s senior management and structure, parting ways with several top executives and splitting its powerful
investment banking unit in two.

The move adds to the upheaval sweeping through Europe’s investment banks, several of which are in the middle of restructurings of their own and is the most significant yet by John
Cryan, who took over in July as co­chief executive from Anshu Jain. It comes as Germany’s biggest lender is struggling to restore profitability and its reputation following a series of
corruption scandals and missed performance targets.

Deutsche said yesterday that two of its divisional heads ­ Colin Fan, who co­heads the investment bank, and Michele Faissola, who runs the asset and wealth management arm ­
would depart. Stefan Krause, a former chief financial officer, will also leave, as will Stephan Leithner, who previously headed the bank’s European business outside the UK and
Germany.

The exodus of top executives, many of whom came to prominence under Mr Jain, will be accompanied by a reshaping of Deutsche’s structure. The investment bank will be split in two,
with corporate finance to be combined with Deutsche’s global transaction banking unit to form a new division. This will be run by Jeff Urwin, who previously headed the investment
bank with Mr Fan.

The securities trading unit formerly run by Mr Fan will become a standalone business to be headed by Garth Ritchie, who leads the equities business. Deutsche will also shift its wealth
management business from its asset management division to its retail banking arm.

The new structure is designed to simplify the bank, which is scrambling to deal with investigations by regulators across the world into a range of alleged wrongdoing from breaking US
sanctions against Iran to the rigging of the Libor interest rate and foreign exchange markets, to money laundering in Russia.

“Everywhere he looks there are fires breaking out,” said a friend of Mr Cryan.

The shake­up comes 10 days before Mr Cryan and co­chief executive Jürgen Fitschen are due to unveil the final details of the bank’s new five­year plan, which is expected to involve
thousands of job losses. It is the latest in a series of restructurings to hit the European investment banking sector.

Barclays is drawing up plans for more cuts to its trading operations as it prepares to appoint Jes Staley, a veteran US investment banker, as its chief executive. Meanwhile, staff at
Credit Suisse and Standard Chartered are bracing for drastic cuts under plans being drawn up by recently appointed chief executives Tidjane Thiam and Bill Winters.

However, Mr Cryan is widely seen as having the toughest task facing the new breed of European bank bosses because Deutsche has few alternatives to its struggling investment bank
­ unlike Credit Suisse’s large private bank and Barclays’ big UK retail bank.

 

By: James Shotter, Martin Arnold and Katie Martin ­


by James Shotter, Martin Arnold and Katie Martin ­

October 19, 2015 | 4:08 am
  |     |     |   Start Conversation

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