It’s a Cryan shame – sources say Deutschebank CEO to be replaced

by | 27 Mar, 2018

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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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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