March 16, 2012 / 1:57 PM / 7 years ago

German regulator vetoes key Deutsche Bank exec

FRANKFURT/BERLIN (Reuters) - German financial markets regulator BaFin fired a shot across Deutsche Bank AG’s (DBKGn.DE) bow by refusing to approve William Broeksmit as chief risk officer in a broader management overhaul announced by Germany’s flagship lender.

One source told Reuters BaFin felt Broeksmit did not have a sufficient leadership track record at Deutsche, which on Friday named three new members to its seven-member management board.

The Frankfurt-based bank failed to elevate Broeksmit, head of risk at the corporate and investment bank, and instead appointed Stuart Lewis to replace Hugo Baenziger as chief risk officer from June 1.

The decision to leave out Broeksmit is a blow to 49-year-old investment bank chief Anshu Jain, who is appointing new managers before he becomes co-chief executive in May alongside Juergen Fitschen, the 63-year old head of regional management.

Broeksmit joined Deutsche Bank in the 1990s as part of a core group of bankers who, like Jain, defected from Merrill Lynch. Between 1996 and 2001, Broeksmit established Deutsche’s over-the-counter derivatives business in Europe.

Bafin declined to comment on whether it had ruled out Broeksmit as a candidate.

German Finance Minister Wolfgang Schaeuble however on Friday said financial regulator Bafin acted autonomously when it screened potential candidates for Deutsche Bank’s management board.

Bafin — which is under the authority of Germany’s finance ministry — needs to formally approve potential appointments to the management board of Germany’s largest bank.


Stephan Leithner will become management board member in charge of personnel and head of Europe, and Henry Ritchotte will become chief operating officer, replacing current German board member Hermann-Josef Lamberti, Deutsche Bank said on Friday.

Jain’s reshuffle will see investment bankers, known within the bank as “Anshu’s Army”, extend their influence over the expanded group executive committee.

Deutsche’s group executive committee will be enlarged to 18 members from 12, elevating a group of company veterans.

In a joint statement on Friday Fitschen and Jain said: “By expanding the Group Executive Committee, we are bringing together a broad team of leaders from our businesses, regions and infrastructure functions at one shared table. This new generation of long-serving managers reflects the Bank’s growth and evolution over the past decade.”

Gunit Chadha will become co-CEO of Asia Pacific alongside Alan Cloete and Michele Faissola will take over asset and wealth. Colin Fan will be appointed co-Head of corporate banking and securities alongside Robert Rankin.

David Folkerts-Landau will be head of research and Colin Grassie will become CEO of the United Kingdom.

Christian Ricken will head up private and business clients and Werner Steinmüller remains head of global transaction Banking. Richard Walker will be General Counsel, Deutsche Bank said.

Kevin Parker, the current head of asset management, and Pierre de Weck, head of private wealth management, will stand down as GEC members, on May 31, 2012, the bank said.

Additional reporting by Matthias Sobolewski; Editing by David Cowell

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