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Deutsche Bank pressed the ECB to appoint Achleitner’s successor

Deutsche Bank pressed the ECB to appoint Achleitner’s successor

Europe’s leading regulatory bank is pushing Deutsche Bank to look for a successor to direct Paul Achleitner, who will leave in May 2022 at the end of his second five-year term.

The European Central Bank has repeatedly called on Germany’s largest lender to present a clear plan to follow up in recent months, people informed on the matter told the Financial Times.

“Corporate governance is a key regulatory priority [for the ECB]”Said one person, adding that inheritance was a key topic of discussion between the bank and the regulator.

The person added that the ECB wanted to take part in the decision, but was concerned that Deutsche would present the appointment as it had been carried out before next year’s shareholders ’meeting.

Reuters was the first to report the news. The watchdogs and the bank refused to give an opinion.

Achleitner will leave Deutsche next year after a difficult 10-year hiatus. Deutsche reported accumulated losses of 12 billion euros, raised 19.5 billion euros in new capital and announced five strategic reorganisations.

Its shares have lost 60% of their value during that period. However, since Christian Sewing was appointed CEO in 2018 and started with ambitious cost reductions and partially retired from investment banks, performance has improved.

Achleitner’s succession is led by Mayree Clark, a member of Deutsche’s supervisory board since 2018 and a former founder and partner of the US investment fund Everywin Capital.

Last summer he replaced Achleitner as chairman of the oversight committee.

In recent years the bank has clashed several times with governments with regulators. In 2019, EBZ veto appointment on the Deutsche board of Jürg Zeltner, who was a former banker at UBS and was also the head of the main European private banking group KBL-backed KBL, a direct competitor of Deutsche.

Regulators even pressed Sewing out his role as head of investment banking, that was the change finally announced earlier this year.

In April, German regulators BaFin publicly he scolded Deutsche for poor control against money laundering. The watchdog extended and extended the order of a special delegation to the parachute parachute in the bank in 2018 to monitor the lenders ’progress in tightening internal controls.

Those familiar with Deutsche’s succession process said Clark was in regular contact with the ECB.

Inside, three members of the bank’s supervisory board – the so-called “three Ws” – have been named as potential candidates: Deutsche Börs CEO Theodor Weimer, former German PwC chief Norbert Winkeljohann and former Volkswagen chief financial officer Frank Witter.

Weimer will be able to take on his role if he resigns from Deutsche Börse if he has a contract until 2024. At this year’s press conference, he dismissed the idea, saying he could say it was “not at all controversial”. success Achleitner. Weimer refused through Deutsche Börse.

Winkeljohann is chairman of Germany’s chemical giant Bayer and a member of two other supervisory boards.

Witter, who was Volkswagen’s chief financial officer before becoming chief financial officer, joined Deutsche’s management last month. Both did not immediately respond to FT’s request for comment. Achleitner and Clark refused.

The news that the ECB is satisfied with the management of Deutsche in the succession process is another problem in the two weeks since another major banker. he resigned finished an investigation which encouraged corporate clients to engage in potential mis-selling of currency derivatives in financial distress.

In addition, Deutsche warned investors a ruling on bank account fees in Germany on Thursday would throw a 300 million euro hole in year-over-year profits. Chief Financial Officer James von Moltke also said Deutsche could lose its 2022 cost reduction target because next year’s bank tax will be higher than previously forecast.

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