Deutsche Bank is giving Marcus Schenck, co-head of the newly combined investment bank and trading business, responsibility for overseeing clients in a reorganisation that will see the bank focus on corporate customers, according to a copy of a memo seen by Bloomberg.
Schenck will also take charge of corporate finance, global capital markets and the institutional client group, while co-head Garth Ritchie will deal with products and processes and oversee operations including equities, fixed income and currencies, the e-mail said. The bank is also creating a combined debt, equity and leveraged capital markets business within the investment bank.
The two executives are tasked with striking a balance between stemming a loss of market share that accelerated last year and cutting €700mn ($742mn) of costs by 2018. That comes as the firm pivots away from hedge funds and other financial firms, pledging almost two-thirds of the unit’s balance sheet for Corps. In 2011, institutional clients accounted for about twice as much revenue as corporate customers.
“It makes sense that Deutsche Bank is now working out the details of the new structure for the investment bank,” said Piers Brown, an analyst at Macquarie Bank Ltd in London.
“If you are buying Deutsche you may expect that they are trying to at least maintain market share in the investment bank and this is something Schenck will be measured against.”
Troy Gravitt, a spokesman for the firm, declined to comment.
The Global Capital Markets division will be headed by Alexander von zur Muehlen and Mark Fedorcik, reporting from Frankfurt and New York, respectively, the e-mail said. The new division will work in partnership with the bank’s corporate finance and institutional client group and will “operate financially as a joint venture” between its corporate finance, equities and fixed income and currencies units, according to the e-mail.
Fedorcik and von zur Muehlen will report to Schenck and Ritchie, who were co-authors of the e-mail.
Deutsche Bank shares fell 0.2% as of 11:24am in Frankfurt to €15.24.
Cryan has said previous management teams made the bank too complex and inefficient by putting short-term earnings ahead of Deutsche Bank’s long-term interests. He is now implementing long-term plans to overhaul the lender.
In April, the bank said it hired James von Moltke from Citigroup to replace Schenck as chief financial officer as he moves into his new role as co-head of investment banking and trading with Ritchie, an executive who came up through the equities business.
In the note to employees, Deutsche Bank also said that the corporate finance business will operate as one global business, run by existing regional heads. The bank will soon announce a new head for the division’s corporate banking coverage operation for the Asia-Pacific region, according to the e-mail.
The bank’s institutional client group will be co-headed globally by Kenan Altunis and Stefan Hoops, who will report to Schenck and Ritchie, the e-mail said.
Schenck and Ritchie also discussed the recent decision to create a corporate and investment banking hub, known as CIB Central and headed by Christiana Riley and Lawrence Shaw. The reorganisation of the division support teams is intended to “reduce bureaucracy and complexity, which will achieve substantial cost savings in 2017,” they wrote in the e-mail.
After the reorganisation, which will take effect on July 1, the corporate and investment banking division will comprise six areas, the e-mail said: Corporate Finance, including Corporate Banking Coverage, Global Capital Markets, Global Transaction Banking, Equities, Fixed Income & Currencies, and Institutional Client Group.






Former managers said to get a portion of bonuses


Bloomberg
Frankfurt




Deutsche Bank chairman Paul Achleitner has offered a good news-bad news deal to former management board members: We’ll pay the unvested portion of your bonuses if you give up claims to payments withheld by the lender.
The proposal is meeting resistance from some ex-board members with a larger share of the suspended bonus payments, said three people with knowledge of the matter who asked not to be identified because the talks are private. There’s disagreement over the total amount of bonuses the group will forfeit and each individual’s share, one of the people said.
Achleitner is seeking to persuade the former executives to help pay for fines the lender suffered because of past misconduct and said at the annual general meeting in May that the bank expected an agreement in coming months “which ensures that the individuals involved make a substantial financial contribution.”
The Frankfurt-based lender is seeking a simultaneous agreement with all the former board members, two of the people said.
Deutsche Bank declined to comment, referring to Achleitner’s comments at AGM. The bank said in its 2015 annual report that it had decided to suspend bonuses to 10 former management board members and an incumbent one, naming Juergen Fitschen, Anshu Jain, Stefan Krause, Stephan Leithner, Rainer Neske, Henry Ritchotte and Stuart Lewis, who still serves on the management board.
The proposal would see former Deutsche Bank executives forgoing bonuses that the bank technically still owes them but has suspended. In return, they would not admit to any guilt and the bank would renounce the right to file damage claims against them, according to three people with knowledge of the matter. Former management board members of Deutsche Bank involved in those negotiations were surprised by Achleitner’s statement at the AGM, according to three of the people. Hugo Baenziger, who was the lender’s chief risk officer between 2006 and 2012, said in a newspaper interview later that he had not been in touch with Achleitner for the nine months preceding the AGM.
Negotiations between Deutsche Bank and some former board members have resumed and even accelerated since the AGM, two of the people said. A large chunk of bonuses vest in August, presenting an incentive for the former executives to reach an agreement before that month, according to one of the people.
Responding to a question from a shareholder at the AGM, Achleitner said that the bank is currently withholding bonuses worth €7.27mn ($8.14mn) and 161,029 share awards from ex-co CEO Anshu Jain and €4.64mn in cash payments and 124,160 share awards from ex-CEO Josef Ackermann. He did not name any other former board members nor did he specify how much in total bonuses has been suspended.
Deutsche Bank shares rose as much as 1.2% to €15.65 and were trading at €15.59 as of 12:38pm in Zurich.
John Cryan, the current chief executive officer, has said previous management teams made the bank too complex and inefficient by putting short-term earnings ahead of Deutsche Bank’s long-term interests. 
The lender posted two consecutive years of losses, in part because of misconduct fines, and in January completed a $7.2bn settlement with the US over its handling of mortgage-backed securities before 2008.
Cryan took the top role in 2015, when co-CEO Anshu Jain stepped down, and ran the bank together with Juergen Fitschen before becoming sole CEO the following year. Jain helped build Deutsche Bank into Europe’s biggest securities firm under former CEO Josef Ackermann.