UK Deutsche Bank CEO sacked after lengthy boardroom battle

Adjust Comment Print

In June 2016, Germany's biggest lender also failed the USA stress test, assessing how the bank would perform in a financial crisis.

The German bank last month reported a 2017 net loss of 735 million euros (nearly $900 million), its third straight year of losses since Cryan became CEO in mid-2015. "However, following a comprehensive analysis we came to the conclusion that we need a new execution dynamic in the leadership of our bank", reiterated Mr. Achleitner.

Deutsche Bank AG (NYSE:DB) is up 2.3% to trade at $14.19 this morning, after the German lending giant appointed Christian Sewing as its new chief executive officer, replacing embattled CEO John Cryan, effective immediately.

Sewing, who has been with Deutsche Bank for more than 25 years, was most recently responsible for its private and commercial bank operations. The decision to appoint someone with a strong retail banking background is seen as a potential move towards a more domestic-market focused bank.

He said that setbacks of the kind witnessed in the final quarter of past year must not be repeated.

Cryan was appointed CEO in 2015. That followed losses of €6.8bn in 2015 and €1.4bn in 2016.

Christian Sewing has been with Deustche Bank since 1989 and will look to overturn its fortunes; its share price has dropped 55% under Cryan's stewardship.

More news: LG G7 ThinQ Name Confirmed, Phone Launching On May 2
More news: NY Trump Tower Fire On 50th Floor Out, One Injured
More news: Antoine Griezmann seals point for Atletico in Madrid derby

He was additionally entrusted with controlling the bank's spiraling expenses and rapidly cut a large number of occupations.

He had neutralized the worst legal threats, in part by paying billions in fines and compensation, strengthened Deutsche's capital foundations with an 8 billion euro (US$9.83 billion) share issue a year ago and floated asset management division DWS on the stock market last month. "We trust in the great ability of this bank and its many talents".

Deutsche Bank's main problem, according to Abouhossein and Ranjan, is that there has been "little evidence of commitment to changing the organisation in the interests of the owners: shareholders and creditors". Sewing also confronts a decision on scaling back the investment bank - both Deutsche Bank's biggest source of revenue and a perennial laggard against USA giants - and winning over long-suffering shareholders.

"He's generally cleared those up and now it would appear that Deutsche can't turn things around with respect to edges".

Sewing said it stood to reason that the bank had to return to profitability as soon as possible, everything else, he added, was not negotiable.

"The bank will now be steered more strongly from Germany, but the supervisory board also needs members with long experience in worldwide finance", Achleitner said. "We confide in the considerable capacity of this bank and its numerous gifts". Cryan and Marcus Schenck, who was co-deputy CEO with Sewing, will part ways with the lender.