Deutsche Bank is to split its investment banking unit in two as part of a radical restructure which will see several top executives depart.
The FT reports the bank has confirmed that two of its divisional heads – Colin Fan, who co-heads the investment bank, and Michele Fassiola, who runs the asset and wealth management arm – are stepping down.
Stefan Krause, a former chief financial officer, will also leave, as will Stephan Leithner, who previously headed the bank’s European business outside the UK and Germany.
Deutsche’s investment bank will be split in two, with the corporate finance business to be combined with its global transaction banking unit to form a new division. This will be run by Jeff Urwin, who previously headed the investment bank with Fan.
The securities trading unit will become a standalone business and will be headed by Garth Ritchie, who leads Deutsche’s equities business.
Deutsche will also shift its wealth management business from its asset management division to its retail banking arm. Following Faissola’s departure, Quintin Price, a former BlackRock executive, will head the asset management unit.
The new structure is designed to simplify the bank, as new co-chief executive John Cryan scrambles to deal with a number of regulatory investigations, including alleged Libor rigging.
The shake-up comes 10 days before Cryan and his co-chief executive Jürgen Fitschen are due to unveil the final details of the bank’s new five-year plan, which is expected to involve thousands of job losses.