Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Deutsche Bank chairman urged to step down by US private equity firm Cerberus

Deutsche Bank chairman urged to step down by US private equity firm Cerberus

Cerberus has lost faith in Achleitner and its desire for change has increased since merger talks with Commerzbank failed earlier this year, according to the sources.
Achleitner took over as chairman of Deutsche Bank in 2012 and its share price is down more than 73% since then. Separate sources within the bank, who also wanted to remain anonymous, have told CNBC there are growing frustrations over the failed Commerzbank merger and an unsuccessful return to profitability.

U.S. private equity firm Cerberus is hoping to replace Deutsche Bank Chairman Paul Achleitner, two sources confirmed to CNBC on Tuesday.

Cerberus has lost faith in Achleitner and its desire for change has increased since merger talks with Commerzbank failed earlier this year, according to the sources. The private equity firm has a 3% stake in Deutsche Bank.

The German bank has declined to comment on the story which first reported by the Financial Times. However, two people familiar with the matter told CNBC on the condition of anonymity that Cerberus was indeed pushing for the 63-year-old chairman to be replaced.

Germany’s flagship lender has been in the news for all the wrong reasons — from settlements with the U.S. Department of Justice, to management reshuffles, weak earnings, massive fines, constant restructuring, merger speculation and steep stock price falls.

In the past, Deutsche Bank’s other big shareholders have raised concerns about the bank’s failing strategy and have called for a reshuffle of the board. In May, Deutsche Bank’s proxy advisor Institutional Shareholder Services (ISS) called for shareholders to vote against the board, citing a series of scandals resulting from the bank’s failure to uphold anti-money laundering controls and causing reputational and monetary damage.

The FT has also reported that the lender’s other large shareholders – members of the Qatari royal family, funds managed by former J.P. Morgan Chase executive Doug Braunstein and asset manager BlackRock – have concerns about Achleitner’s performance.

Achleitner took over as chairman of Deutsche Bank in 2012 and its share price is down more than 73% since then. However, the sources told CNBC that he is keen to stay on until the end of his term in order to oversee Deutsche Bank’s 150th anniversary next year. Achleitner’s term is due to end in 2022.

Achleitner has presided over a number of management changes at Deutsche Bank, from co-CEOs Anshu Jain and Jürgen Fitschen to John Cryan and now Christian Sewing. Separate sources within the bank, who also wanted to remain anonymous, have told CNBC there are growing frustrations over the failed Commerzbank merger and an unsuccessful return to profitability.

However, ousting a chairman of the board is not easy in Germany. The shareholders will either need to wait until the next annual general meeting, which takes place in May 2020, or form a majority to call in an extraordinary shareholder meeting. For now, the pressure is building on the board to recalibrate its strategy.

Deutsche Bank has been under pressure for a number of years to trim its investment banking division. The bank reported massive losses in the third quarter of 2019, with a 5% fall in investment banking revenues from a year ago. Investment banking is a specific division related to the creation of capital for other companies, governments and other entities.

In July, Deutsche Bank announced it will cut 18,000 jobs for a global headcount of around 74,000 employees by 2022. The bank aims to reduce adjusted costs by a quarter to 17 billion euros ($19 billion) over the next several years.

Shares of Deutsche Bank were up 1.8% on Tuesday morning but are down more than 20% over a 12-month period.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
×