Deutsche Bank’s co-chiefs resign amid scandals

By Benoit Toussaint, AFP

FRANKFURT–European financial giant Deutsche Bank announced Sunday its co-chief executives are stepping down as the banking group faces a wave of scandals and has failed to meet profit targets this year.

Anshu Jain will resign at the end of June, while Juergen Fitschen plans to stay on in the job until after Deutsche Bank’s annual shareholder meeting in May 2016.

Deutsche Bank said it has appointed supervisory board member John Cryan, 54, to take over in July as co-CEO and he will become sole chief executive after Fitschen steps down.

Germany’s largest lender is mired in around 6,000 different litigation cases and was last month fined a record US$2.5 billion (2.2 billion euros) for its involvement in an interest rate-rigging scandal. In mid-May, the bank confirmed it had opened an internal probe into its investment division in Russia, with the German press speaking of possible money laundering. Bloomberg reported the case involved some US$6 billion in transactions over four years. The resignations were welcomed by stockholders in Germany, who had blasted the leaders for their performance. ��The investors had lost their trust in Anshu Jain and Juergen Fitschen,�� said Klaus Nieding, vice president of the shareholders’ association DSW. The duo had taken the reins of the bank with the promise of ending a string of scandals, improving its image and making the institution more profitable.

But three years later the results are still not where shareholders want them to be and the bank’s legal troubles have not gone away.