Deutsche Bank AG (DBK) looks at an uncertain future after the co-CEOs both announced their resignation on Sunday. The future of the world’s largest Frankfurt-based bank now lies in the balance.
Anshu Jain, one of the co-executives and a seasoned trader and investment banker, will officially step down by end of this month. Meanwhile, the other co-CEO, Jurgen Fitschen, 66 years of age, plans to officially part ways with Deutsche Bank AG after the shareholder meeting in May next year.
The former UBS AG finance chief, John Cryan, will be the replacement for the duo.
These top profile resignations come after a series of regulatory penalties and financial irregularities that have of late engulfed the banking giant.
In the past couple of weeks, the performance of the bank as well as it management has been under increased pressure from employees and shareholders who have quickly lost confidence as a result of poor performance by the bank.
One of the indicators that showed all was not well with Deutsche Bank (DBK, -0.55%) was an open letter by the labor-union representatives addressed to the bank last month. The letter titled “Wind of Change? Wind of Jain” demanded Anshu Jain’s resignation. Interestingly, the letter was welcomed by employees and it also resonated with some senior executives.
Also, adding to the pressure on the two top executives, Fitschen is currently standing trial in Germany as a result of the collapse of Kirch, a media empire. Fitschen has denied all charges against him.
The co-CEOs’ fate was sealed on Sunday afternoon during the supervisory board meeting where Cryan was named as their successor. Cryan, 54, previously worked at Temasek in Singapore as a senior executive before later joining the Deutsche Bank’s board in 2011.
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