Deutsche Bank boss to resign

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The head of Deutsche Bank, John Cryan, is to come down in the midst of continued losses in Germany, the largest creditor.

He will be replaced by co-deputy chief executive, Christian Sewing.

Mr. Cryan has held the process in 2015, during which the Deutsche Bank has reported three years of losses.

Chairman Paul Achleitner thanked Cryan, but he said: “After a thorough analysis we came to the conclusion that we need a new enforcement dynamic in the leadership of our bank.”

The creditor has dealt with sales slowing down and its share price dropped 30% this year.

Mr. Cryan will leave Deutsche Bank at the end of the month.

Mr. Sewing, who has been with Deutsche Bank for mroe than 25 years, has been appointed general manager with “immediate effect”.

Mr. Achleitner, said: “Despite his relatively short tenure as chief executive officer, John Cryan, played a key role in almost 150 years of the history of the Deutsche Bank – and laid the foundations for a successful future of the bank. The supervisory board in general, and I am personally grateful to you for this.”

Deutsche Bank announced the decision after an emergency meeting of the board of directors, called by Mr. Achleitner, to discuss the succession on Sunday.

According to Reuters, has begun a search to replace Mr. Cryan after the bank reported an annual loss of 500 million euros (£436m) at the end of February.

That followed losses of €6.8 bn in 2015 and €1.4 bn in 2016.

Mr. Cryan was appointed co-ceo in the month of July 2015 and a review of the bank following a series of regulatory problems dating back to before the financial crisis.

He was also responsible for the control of the bank, a dramatic increase in costs and cut thousands of jobs.

However, after becoming sole chief executive in 2016, the lender continued to struggle, largely due to a slump in its investment banking division, which accounts for more than half of the sales. The most dangerous of the world bank

In resolving its legal difficulties, supported by a series of heavy penalties, including a $7.2 billion (£5.9 bn) payment to the authorities in the USA in 2016 on an investigation into mortgage-backed securities.

At that time, was considered the most dangerous bank in the world after the International Monetary Fund (IMF) has found that a potential collapse of the Deutsche posed the greatest risk to the stability of the global financial system.

Shortly before the IMF assessment in June 2016, Deutsche Bank’s american division has failed a stress test conducted by the Federal Reserve, America’s central bank.

Deutsche Bank and Banco Santander’s US unit had only two of the 33 banks to fail the tests to see how they would perform in a financial crisis.

Markus Riesselmann, an analyst with Independent Research, told the news agency: “[Mr Cryan] had to fight the serious problems that its predecessors swept under the carpet for years.

Reuters

“In large part, deleted those and now it seems that Deutsche may not change things with regard the margins. But I doubt that a new chief executive could successfully make the transition.

“It seems rather to be a fundamental” Deutsche Bank “problem”.”

Commenting on the new chief executive officer, Mr. Achleitner, said: “In his more than 25 years at Deutsche Bank, Christian Sewing has experienced a strong and disciplined leader.

“The supervisory board is convinced that he and his team will be able to successfully lead the Deutsche Bank into a new era. We trust in the great ability of this bank and its many talents.”

According to observers, his appointment points to a change in strategy to the creditor towards the retail banking business in its home market in Germany.

However, some studies suggest that the Mr Sewing may respond with a certain scepticism among investment bankers.