Deutsche Bank’s investment arm is split in two as new boss John Cryan tries to reinvigorate the firm
Germany's biggest lender Deutsche Bank is overhauling its management and investment bank structure as new boss John Cryan tries to reinvigorate the company’s performance following a number of fines and shareholder dissatisfaction.
Long-term management board member Stefan Krause is leaving his post along with Colin Fan, co-head of the firm's investment banking and trading unit.
Asset and wealth management division boss Michele Faissola and board member Stephan Leithner are also on their way out. A number of division chiefs are also moving up to the board.
The company’s corporate banking and securities (CBS) business will be split into a corporate and investment banking unit led by Jeff Urwin, who currently co-heads CBS with Fan, and a global markets business that will include sales and trading.
“Deutsche Bank has rarely undergone such a fundamental reorganization in its history. This also requires tough decisions,” said supervisory board chairman Paul Achleitner.
Deutsche Bank’s asset and wealth management is being split into a private wealth management division for high net worth individuals and a standalone Deutsche asset management for institutional clients.
In its statement, the bank said:
The Supervisory Board's guiding principle, in light of the Bank's Strategy 2020, was to reduce complexity of the Bank's management structure enabling it to better meet client demands and requirements of supervisory authorities.
The overhaul comes just four months after the resignations of co-chief execs Juergen Fitschen and Anshu Jain after ongoing shareholder dissatisfaction in the wake of Deutsche Bank's involvement in the scandal to rig Libor, a benchmark interest rate.
The bank warned shareholders earlier this month that it expected to post a €6.2bn (£4.5bn) loss in the third quarte. It said it was putting aside €1.2bn for legal costs.
John Cryan, co-chief executive officer of Deutsche Bank, said:
We want to create a better controlled, lower cost, and more focused bank that delivers long-term value to shareholders and great experiences to clients. The new structure and management team are essential to getting this done.