It’s a Cryan shame – sources say Deutschebank CEO to be replaced
The Deutschebank Towers. Credit: Deutschebank on Flickr
Deutschebank shareholders should keep their eyes and ears open, as apparently the bank is looking to replace its CEO John Cryan, due to internal boardroom tensions and company underperformance during his tenure.
According to people familiar with the matter, the bank has accelerated efforts to line up a successor, with up to 3 main contenders for the position within Deutsche, including the co-head of its corporate and investment bank Marcus Schenck, co-head of its commercial and private bank Christian Sewing and CFO James Von Moltke.
Cryan, who is allegedly known internally as “Mr Grumpy” because of his direct manner, has overseen one of the hardest periods in the banks history, thanks mostly to legal issues concerning the firms conduct during the financial crisis (the selling of toxic investment products). It’s also about high costs, and though Cryan has raised €8bn in capital since his appointment, Deutsche posted its third consecutive annual loss in 2017 of €495m.
As recently as February, Deutsche agreed to pay a $70m settlement to a US regulator which claimed traders at the bank had sought to manipulate a benchmark for interest-rate derivatives and other financial instruments.
Despite major losses and some controversy, the bank still paid out bonuses more generous than competitors including HSBC and Barclays last year.
Investors are disappointed and want change. The announcement of a new face at the helm of the ailing lender may boost the stock price, which has fallen by a whopping 30% in the last year alone.
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