(Bloomberg) — Deutsche Bank AG co-CEOs Anshu Jain and Juergen Fitschen are planning to resign, according to a person familiar with the matter.
The banks supervisory board met Sunday to discuss who will succeed the pair, according to the person, who asked not to be identified before an official announcement is made.
Jain is said to be leaving at the end of June, with Fitschen departing at the banks next annual general meeting.
Anshu was always viewed with suspicion in Germany, where a lot of people thought the problems, like Libor and foreign exchange, were all down to the investment bank, which he ran for a very long time, Christopher Wheeler, a London-based analyst at AtlanticEquitiesLLP, said in a telephone interview.
The Wall Street Journal earlier reported the departures of Jain and Fitschen on its website, citing unidentified people familiar with the matter.
John Cryan, the former chief financial officer at UBS AG, will succeed Jain, the Financial Times reported, without saying where it got the information.
People will like John because he shrunk UBS, Wheeler said. John has been there and got the T-shirt in the eye of the crisis.
Cut Costs
The resignations come as Deutsche Bank has struggled to rein in costs and resolve litigation issues. At the banks last annual shareholder meeting in May, 61 percent of investors voted to support management, the lowest level since 2002.
Some investors have questioned if the co-CEOs plan to cut costs will succeed after Germanys biggest bank failed to meet its previous targets, while the expense of settling investigations into alleged misconduct mounts.
Deutsche Bank was fined $2.5 billion in April by regulators in the U.S. and the U.K. for manipulating interest-rate benchmarks. The penalty is the biggest Deutsche Bank has paid for misconduct and comes on top of the 7.1 billion euros ($8 billion) it spent on litigation in the past three years. The firms outstanding legal challenges include probes into the rigging of benchmark foreign-exchange rates, as well as investigations into mortgage- and asset-backed securities dealings and alleged U.S. sanctions violations.
The bank is also conducting an internal probe into possible money laundering by Russian clients that may involve about $6 billion of transactions over more than four years, according to people with knowledge of the situation. The Bank of Russia approached Deutsche Bank in October asking the firm to examine the stock-trading activities of some clients in the country, Bloomberg reported on Friday.
