Deutsche Bank CEOs resign following Libor scandal

John Cryan, has been a member of Deutsche Bank’s Supervisory Board since 2013, has been appointed to the position of Co-Chief Executive Officer.

The Supervisory Board has asked Anshu Jain to remain as a consultant with Deutsche Bank.

The move follows news that two weeks ago, Deutsche Bank agreed to a $55 million settlement in the U.S. Securities and Exchange Commission for conspiring to manipulate benchmarks during the financial crisis.

In April, the Financial Conduct Authority also handed Deutsche Bank a £227 million fine, its largest ever for Libor and Euribor related misconduct.

Between January 2005 and December 2010, trading desks at Deutsche Bank manipulated its Libor and Euribor submissions across all major currencies, and also misled the regulator, hampering the investigation.

Shares in the bank are said to have jumped 8% following the news, as investors welcomed the departure of the two co-chief executives.

Paul Achleitner, Chairman of the Supervisory Board of Deutsche Bank, said:

“On behalf of the Supervisory Board, I would like to express our gratitude and respect for the contributions that Jürgen and Anshu have made to our bank. Due to their decades of commitment, Deutsche Bank attained its leadership position. Their decision to step down early demonstrates impressively their attitude of putting the bank’s interests ahead of their own.

“Over the course of two decades, Anshu has been instrumental in founding, and then growing, many of Deutsche Bank’s leading businesses. Without his efforts, our bank today would not have achieved or sustained its global leadership. Anshu has earned a place in our bank’s history as an executive who helped to transform Deutsche Bank into the global leader, rooted in Germany, that it is today.”

Anshu Jain, Co-Chief Executive Officer of Deutsche Bank, said:

“It has been 20 years this month since I came to work at Deutsche Bank and it has been an extraordinary time. Over the past three years, I have been afforded the privilege and honour to lead this great institution together with Jürgen. In our time as the bank’s leaders, we have boosted capital, reduced exposures and risk and invested significantly in technology, control and compliance capabilities. Most significantly, we have kept our clients happy and our revenues growing while reshaping and strengthening the bank.

“I believe that with Strategy 2020 in place, which puts the bank’s future on a strong track, it is right for the bank and for me to have new leadership at this time. I will be forever honored to have served here, and I am convinced that the future of the bank is bright and in very good hands.”