Over the weekend, Deutsche Bank unveiled a plan to drastically overhaul Germany’s largest financial institution in conducting its business. The company will split up its investment bank in two and completely change its leadership structure.
Deutsche Bank has already announced the launch of a plan to reduce the complexity of the company. The company’s Corporate Banking and Securities (CB&S) division will be the one most affected by the changes.
Starting from January 2016, CB&S will be split into two business divisions named Corporate & Investment Banking and Global Markets. The former will include the Corporate Finance part of CB&S and Global Transaction Banking (GTB).
A newly created business division called global markets will combine the sales and trading activities of CB&S.
In addition, the German bank plans to revamp the Deutsche Asset & Wealth Management division. Private Wealth Management will become the unit catering to high net worth individuals and will become part of the newly created Private & Business Clients division.
At the same time, Deutsche Asset Management will spin off into a stand-alone business division and cater exclusively to institutional clients and funds.
As part of the changes in the bank’s structure a number of management changes have also been unveiled.
Commenting on the announcement, the Chairman of the Supervisory Board of Deutsche Bank, Paul Achleitner, said, “Deutsche Bank rarely underwent such a fundamental reorganization in its history. This also requires tough decisions. I would like to stress that all parties involved have tried to achieve the best possible outcomes for Deutsche Bank, having set aside personal interests.”
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Starting from January 1st of 2016, the Co-Head of CB&S, Jeff Urwin, will join the Management Board of Deutsche Bank and be responsible for Corporate & Investment Banking. As a result, Stefan Krause, who has been responsible for GTB and the Non-Core Operations Unit (NCOU), will be stepping down from the Board on October 31st, 2015.
“In his role as CFO from 2008 until 2015, Stefan Krause made a significant contribution to weathering the peak phase of the financial crisis. He also served the Bank well during the complex decision making processes which led to Strategy 2020,” Mr. Achleitner explained.
Werner Steinmueller will continue to be Head of GTB, and will report to Jeff Urwin. In addition, he will be proposed for election as Chairman of the Supervisory Board of Postbank AG, succeeding Stefan Krause.
After serving as co-Head of CB&S, Colin Fan will be leaving the company effective today (October 19, 2015). The current Head of Equities, Garth Ritchie will succeed him, leading the Global Markets Division on the Management Board starting from January 1st, 2016.
Deutsche Bank has also tapped Quintin Price, who has been serving as a Global Executive Committee member and the Head of Alpha Strategies at BlackRock to assume the Management Board position representing Deutsche Asset Management, starting from January 1st, 2016.
The current Head of Deutsche Asset & Wealth Management, Michele Faissola, will be leaving the Bank after a period of management transition.
“In their roles as Head of Deutsche Asset & Wealth Management and Co-Head of Corporate Banking & Securities, Michele Faissola and Colin Fan have laid the foundations for the Bank’s successful future in those important business divisions,” the Chairman of the supervisory board said.
The Head of Private & Business Clients, Christian Sewing, will assume responsibility for high net worth clients on the Management Board. He will be aided by Fabrizio Campelli, who is serving as Head of Group Strategy, and will run the business and report to Mr. Sewing.