Deutsche Bank is asking investors to replace three non-bankers supervising its executives with finance and legal experts after litigation-related costs eroded profit last year.
Bloomberg reports that shareholders meeting in Frankfurt Wednesday will vote on naming John Cryan, president for Europe at Singapore investment firm Temasek Holdings Pte, Dina Dublon, former chief financial officer at JPMorgan Chase, and Georg Thoma, a partner at law firm Shearman & Sterling LLP, to its supervisory board.
Deutsche Bank co-Chief Executive Officers Anshu Jain and Juergen Fitschen are grappling with legal entanglements that include probes into the rigging of interbank borrowing rates, U.S. lawsuits tied to mortgage-backed bonds and a Milan fraud conviction. Chairman Paul Achleitner, in an April statement, described the board nominees as experts in financial matters, market risk and legal issues.
'They’re up to their necks in litigation - it’s a real battle', Christopher Wheeler, an analyst with Mediobanca SpA (MB), said in a phone interview from London. 'The company won’t escape litigation in the future, given the scale of its business, but they want to try and limit any new developments while they deal with the legacy issues'.
Hit the link below to access the complete Bloomberg article: