By James Covert, Staff Writer, New York Post: Deutsche Bank is cleaning house at the top, and a new boss is already brandishing the axe. The embattled German bank on Sunday named British-born John Cryan to succeed co-CEOs Anshu Jain and Juergen Fitschen, who have been dogged by probes into alleged manipulation of benchmark interest rates, mis-selling of derivatives, tax evasion and money laundering.
Adding to a sense of chaos, the shake-up came just two weeks after Jain was given more power to reorganize operations despite a stiff rebuke from shareholders at the annual meeting, with only 61 percent approving of management’s performance.
“Our future will be defined by how well we deliver on strategy, impress clients and reduce complexity,” Cryan said in a statement. Many investors and analysts have blasted the bank’s turnaround plans as vague, if not too little, too late. “The fact that these guys were let go before they were even able to execute their restructuring plan speaks of deep-rooted problems at Deutsche Bank,” said Jim Osman, CEO of research firm Edge Consulting Group.
“We expect to see spinoffs and restructuring of multiple divisions and possibly the end to the bank as a powerhouse on Wall Street.”