The embattled co-chief executives of Deutsche Bank AG announced their resignations on Sunday, an abrupt move that throws into question the future direction of one of the world’s largest banks.
Anshu Jain, a longtime trader and investment banker, plans to step down at the end of June. The other co-CEO, Jürgen Fitschen, plans to leave after Deutsche Bank’s annual shareholder meeting next May. They will be replaced by John Cryan, a former UBS AG finance chief.
The joint resignations follow a series of financial missteps and regulatory penalties at the giant Frankfurt-headquartered bank. In recent weeks, the pressure has intensified, with an increasing number of shareholders and employees losing confidence in the bank’s performance and the management team’s turnaround plans.
Among the ominous signs was an open letter sent to Deutsche Bank employees last month. Titled “Wind of Change? Wind of Jain,” the letter from labor-union representatives demanded Mr. Jain’s ouster. The letter resonated not just with rank-and-file employees but also with some senior executives, say people familiar with the matter.
Adding to the pressure on the co-CEOs, Fitschen is on criminal trial in Germany in connection with the collapse of the Kirch media empire. Fitschen, 66 years old, has denied the charges.
Deutsche Bank’s supervisory board met Sunday afternoon to complete the announcement and to formally name Cryan as a successor. Cryan, 54 years old, worked as a senior executive at Singapore’s Temasek and joined Deutsche Bank’s board after leaving UBS in 2011.
Source: Market Watch
