Deutsche Bank Equities Head Expected to Leave Amid Deep Cuts

(Bloomberg) -- Deutsche Bank AG’s global head of equities Peter Selman will likely step down from his role as the lender plans to implement deep cuts to his unit, according to a person briefed on the matter.

Chief Executive Officer Christian Sewing is finalizing a new turnaround plan that’s zeroing in on reductions in equities trading and even potential closures to parts of the unit, people familiar have said. Selman, who was hired out of retirement by Sewing’s predecessor John Cryan, is expected to leave in connection with the overhaul, the person said, asking not to be identified discussing confidential information.

A Deutsche Bank spokesman declined to comment and Selman didn’t immediately respond to an email seeking comment. The Wall Street Journal reported Selman’s likely exit earlier.

Deutsche Bank’s equities business has long been in the center of regulatory and shareholder criticism, and the bank has been discussing scaling it back since at least the middle of May, people familiar with the matter have told Bloomberg. The lender is even considering shuttering the U.S. equities operations entirely though it’s not seen as the favorite option, other people have said.

Decisive cuts to the business would mark a reversal from previous efforts under Cryan to revive it. Selman, a former Goldman Sachs Group Inc. executive, was brought in less than two years ago to replace Tom Patrick, who now is head of the Americas. Patrick may also be replaced, people familiar with the matter have said. Brad Kurtzman, who co-lead equities trading, departed the bank earlier this year.

Sewing has purged the top ranks of the bank over the past year, replacing executives who rose under Cryan with his own trusted lieutenants, and he’s considering more changes at the top as part of his turnaround effort.

Selman co-led sales and trading in the Americas with fixed-income executive James Davies, who was promoted recently and moved to New York. Davies is seeking to expand his unit.

--With assistance from Sonali Basak.

To contact the reporter on this story: Steven Arons in Frankfurt at sarons@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel

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