Deutsche Bank to Name Stefan Hoops to Head New Unit in Overhaul
Deutsche Bank to Name Stefan Hoops to Head New Unit in Overhaul
(Bloomberg) -- Deutsche Bank AG plans to promote Stefan Hoops to head a new division, probably comprised of the transaction bank and the lender’s commercial-clients unit, in a sweeping overhaul to be announced this weekend, people familiar with the matter said.
Hoops, the current transaction bank chief, will be in charge of a fourth core division that Chief Executive Officer Christian Sewing plans to create by taking the transaction bank out of the investment bank and merging it with the commercial clients parts of the retail division, the people said, asking not to be identified discussing the private deliberations.
Mark Fedorcik, currently co-president of the investment bank, will probably take on oversight of that unit’s remaining businesses after the departure of Garth Ritchie, one of the people said, adding that Hoops and Fedorcik won’t have seats on the management board. He will oversee businesses such as advising companies on raising money and M&A, generally referred to as corporate finance, as well as fixed-income trading and any remaining equities trading after cuts. Sewing has taken control of the investment bank.
A spokesman declined to comment. Hoops and Fedorcik didn’t immediately respond to requests for comment.
Sewing is poised to announce the largest restructuring in at least a decade at the troubled German lender. Along with deep cuts to the investment business, it will also involve shaking up a management board that’s already seen the announced departure of investment bank head Garth Ritchie. Retail head Frank Strauss and Chief Regulatory Officer Sylvie Matherat are also set to leave, people familiar with the matter have said.
The restructuring plan may involve as many as two new appointments to the management board, one of the people said, without giving any names.
Sewing has long highlighted the transaction bank as a particular strength of the bank and his appointment of Hoops -- a confidant -- to head the unit last year was seen as a move to strengthen it after it had been relegated to a lesser status when it was folded into the investment bank in a previous restructuring. Bloomberg in May first reported that a stronger profile for the transaction bank would be key plank of Sewing’s next turnaround plan.
A fifth division will likely be a new non-core unit that will hold about 50 billion euros ($56 billion) in risk-weighted assets, people familiar with the matter have said. That unit could be headed by Louise Kitchen and Ashley Wilson, other people have said.
To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Sonali Basak in New York at sbasak7@bloomberg.net
To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Ross Larsen
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