Deutsche Bank has new boss in revamp
Bank names John Cryan to take over as chief executive
Deutsche Bank has named John Cryan as its new chief executive officer in a surprise revamp after incumbents Anshu Jain and Juergen Fitschen struggled to win investor backing for a strategy overhaul.
Mr Cryan, the former chief financial officer at UBS, will run the firm alongside Mr Fitschen after Mr Jain leaves on June 30, the company said yesterday. The 54-year-old, a member of Deutsche Bank's supervisory board, will be sole chief executive after Mr Fitschen departs next May.
Mr Jain (52), and Mr Fitschen (66), were under pressure to persuade investors a strategic plan announced in April would succeed, after Germany's biggest bank failed to meet previous targets in the face of mounting legal costs.
The top managers received the lowest approval from shareholders in at least a decade at last month's annual meeting.
“The supervisory board drew consequences from the voting disaster at the annual general meeting,” said Ingo Speich, a money manager at Union Investment Privatfonds in Frankfurt. “The decision for John Cryan isn't surprising.”
It's an abrupt reversal for Mr Jain, who helped build Deutsche Bank into Europe's biggest investment bank and a leader in debt trading. He and Mr Fitschen, who replaced Josef Ackermann in 2012, struggled to adapt to toughening rules that made some activities less profitable, while dealing with a barrage of legal issues.
The bank was fined $2.5bn in April by regulators in the US and the UK for manipulating interest-rate benchmarks. It still faces potential fines related to foreign exchange, mortgage and asset-backed securities, and is under investigation for other alleged US sanctions violations. (Bloomberg)