Deutsche Bank CEO advised to relinquish investment bank
Frankfurt — Deutsche Bank’s top supervisors told CEO Christian Sewing they would prefer him to hand oversight for investment banking to someone else so he can fully focus on his main role, said people familiar with the matter.
The European Central Bank (ECB) and Germany’s BaFin raised the issue in informal talks with Sewing and aren’t pushing for immediate change, the people said, asking not to be identified discussing the private information. They signalled a handover of the responsibility in 2020 could be sufficient, the people said.
“We’re in continuous constructive dialogue with our regulators and there are no plans to change management board responsibility for our investment bank,” a spokesperson for Deutsche Bank said.
Representatives for the ECB and BaFin declined to comment.
Sewing added responsibility for the investment bank to his CEO role after the ouster of former head Garth Ritchie during the lender’s restructuring in July. Sewing has been considering hiring an external executive to hand over that role to ease the workload on him, Bloomberg reported in September, citing people with knowledge of the matter.
The pressure by regulators was first reported by the Financial Times on Monday. The lender on Friday said it added Fabrizio Campelli to the management board to lead the restructuring. The “size of the task” warrants the appointment, supervisory board chair Paul Achleitner said.
The appointment of “Campelli as chief transformation officer gives the CEO and his deputy far more time to focus on the strategic direction and development of the business”, the spokesperson said on Monday.