Deutsche focuses on investment banking in reshuffle

FRANKFURT Wed Mar 7, 2012 1:38pm EST

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FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) is shaking up its top management to give investment banking and emerging markets more prominence, and will oust risk officer Hugo Baenziger, two sources familiar with the matter said on Wednesday.

It will elevate American banker William Broeksmit, currently head of risk at the corporate and investment bank, to its seven-member management board as group risk chief, the sources said.

Between 1996 and 2001, Broeksmit established Deutsche's over-the-counter derivatives business in Europe and was part of a core group of bankers who, like investment banking chief Anshu Jain, defected from Merrill Lynch.

The move also foresees the appointment of Canadian trader Colin Fan, and Australian Robert Rankin as co-chief executives of the investment bank, the source said.

Fan is head of credit and emerging markets, the heart of Deutsche Bank's "flow monster" which has been responsible for generating the lion's share of profits.

Rankin, who heads Deutsche Bank Asia Pacific operations, helped the bank secure roles on the landmark AIA (1299.HK) and Agricultural Bank of China (601288.SS) initial public offerings.

The German bank is in a period of transition before 49-year-old Jain, head of the corporate and investment bank, and 63-year-old Fitschen, now head of regional management, take over as co-chief executives in May following the retirement of Josef Ackermann.

Deutsche Bank declined to comment on the moves. "We never comment on market rumors," a spokesman for the bank said.

Baenziger, a powerful figure within the bank known for his grasp of regulation and his ability to challenge investment bankers, was himself passed over as chief executive last year. Ackermann had seen him as a strong candidate.

Baenziger, a Swiss, was also seen as a contender to take a senior role at UBS (UBSN.VX) before the Swiss lender appointed Sergio Ermotti as chief executive.

Deutsche Bank's supervisory board, the only body formally empowered to make appointments to the executive board, still needs to approve the reshuffle.

Hermann-Josef Lamberti, management board member responsible for human resources and process management, is also expected to leave Deutsche Bank, the source said.

He will be replaced by Stephan Leithner, currently co-head of investment banking coverage and advisory. Leithner will become a member of the executive board with responsibilities for legal affairs and personnel, the source said.

Henry Ritchotte, chief operating officer at the investment bank, will become group chief operating officer, the source said.

Michele Faissola, head of rates and commodities, will take on a role within the asset and wealth management.

Deutsche Bank's group executive committee will be expanded from 12 members to 17, with Chief Counsel Richard Walker and David Folkerts-Landau, head of global research, becoming members, the source said.

Pierre de Weck, head of private wealth management, and Kevin Parker, head of asset management, are not expected to hold senior positions after Ackermann leaves, the source said.

Rainer Neske, head of retail banking, is expected to remain a member of Deutsche Bank's management board.

(Reporting By Philipp Halstrick and Edward Taylor; Writing by Edward Taylor; Editing by Jon Loades-Carter and David Hulmes)

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