Deutsche Bank reshuffles board to sharpen legal focus
By Thomas Atkins
FRANKFURT (Reuters) - Deutsche Bank DBKGn.DE reshuffled and expanded its management board by naming a Goldman Sachs banker as chief financial officer and creating a new board role to sharpen the bank's focus on resolving a long list of lawsuits and investigations.
The reshuffle will add two members to the seven-member board, with auditing head Christian Sewing moving to the board as the new chief of Legal and Incident Management on Jan. 1.
Marcus Schenck, the London-based Goldman Sachs investment banker and former and finance chief at German energy group E.ON EONGn.DE will replace current CFO Stefan Krause on May 21.
Until then, Krause will also take charge of strategy on Nov. 1 in a second, newly created board seat.
"We are taking this step now in order to increase our focus on the resolution of litigation matters and to further increase our organizational efficiency and effectiveness," Co-Chief Executive Officers Jürgen Fitschen and Anshu Jain said in a statement.
Deutsche Bank has cut costs and lifted operating profit in a turnaround plan launched in 2012, but the threat of further penalties from alleged misconduct weighs on its share price and casts doubt on management's claims of success.
The bank also faces additional legal risks as regulators in the United States, Germany and the UK pursue investigations into possible attempts at interest-rate and forex-benchmark manipulation, high-frequency trading, possible violations of U.S. sanctions on Iran and other activities.
With the threat looming of fines and settlement costs, as well as European banking stress tests year, Germany's largest lender raised 8.5 billion euros in June to strengthen its balance sheet. Continued...