Deutsche Bank appoints new head after CEOs resign

Deutsche Bank yesterday appointed John Cryan as its new CEO after co-chief executives Anshu Jain and Juergen Fitschen resigned following criticism from investors.

Mr Cryan has been on the bank’s supervisory board since 2013 and was a former chief financial officer of UBS. He will replace Jain from July 1 and become the sole CEO when Fitschen steps down next year, the bank said.

Deutsche Bank declined to comment on the resignation offers. Deutsche Bank has struggled to restore an image tarnished by regulatory and legal problems which include probes into alleged manipulation of benchmark interest rates, mis-selling of derivatives, tax evasion and money laundering.

In a last ditch effort to restore confidence in its leadership, the German lender presented a radical management shakeup on May 21, only to face calls for Jain to resign from staff situated in its own headquarters in Frankfurt. Some investors demanded more changes to restore confidence.

Jain landed the top spot at Deutsche in 2012 after the investment banking division he ran consistently delivered up to 85% of group profit and frequently outperformed peers.

However, tougher regulatory requirements and litigation, including a €2.25bn fine to settle allegations that Deutsche traders rigged interest rates, took the shine off a division often referred to internally as Anshu’s army. Cryan will take power at an awkward time, after the bank’s new strategic plan was criticised by investors as too little too late.

Reuters