* Nadine Faruque qualified Swiss, U.S. attorney
* Faruque reformed compliance at Italy's UniCredit
* Deutsche faces long list of regulatory challenges
(Adds background on Faruque, bank compliance efforts)
By Thomas Atkins
FRANKFURT, Aug 5 Deutsche Bank named U.S.-Swiss
lawyer Nadine Faruque to lead a reform of its regulatory
compliance practices, as it battles to cut a long and expensive
list of investigations and potential settlements that have
dogged it since the financial crisis.
Faruque, 53, joins from Italy's UniCredit, where
as general counsel and compliance officer she led governance
reform efforts and was said to keep a cool head during the
period of turmoil that swept the bank during the crisis.
Deutsche Bank launched a reform plan in 2012 to
boost compliance functions after getting hit by a wave of
post-crisis investigations. The bank has paid 5.6 billion euros
($7.5 billion) in the past two years in fines and settlements
and expects to pay another 3 billion in 2014.
Germany's flagship lender has also pushed a 1 billion euro
technology revamp and announced hundreds of new hirings designed
to fortify compliance in the United States and elsewhere as
regulators worldwide tighten controls on the big systemic banks
that were deemed to occupy the centre of the financial crisis.
Deutsche Bank is cooperating with investigators over a long
list of probes, including attempts to manipulate interest rates,
currency trading rates, and gold benchmark rates. Deutsche has
also begun settlement talks with U.S. authorities over dealings
with blacklisted countries such as Iran.
The high cost of compliance failures has crushed
profitability at a number of European banks in recent quarters.
In July, France's largest bank BNP Paribas pleaded
guilty to two criminal charges, agreed to pay $8.9 billion and
have its right to clear certain dollar transactions suspended in
order to resolve accusations it violated U.S. sanctions against
Sudan, Cuba and Iran.
In a scathing report leaked to media in January, German
regulator Bafin said that Deutsche Bank had failed to draw the
necessary consequences with senior personnel following an
interest rate manipulation scandal.
Deutsche's previous global head of compliance, government
and regulatory affairs, Andrew Procter, later left the bank to
work for a law firm.
STRENGTHENING THE RANKS
Since his departure, Deutsche Bank has made a number of
senior appointments, filling a new compliance and risk
management position with a top McKinsey consultant, Thomas
Poppensieker, charged with implementing the bank's so-called
"three lines of defence" programme.
Deutsche has otherwise named women exclusively to the top
ranks of governance, compliance and regulatory affairs.
Sylvie Matherat joined on Aug. 1 as global head of
government and regulatory affairs. Matherat came from the Bank
of France to implement new regulations and manage regulatory
In addition, Deutsche named Daniela Weber-Rey as chief
governance officer in April.
Swiss national Faruque will join the bank's executive
committee and report to Stephan Leithner, member of the
management board who oversees compliance, Deutsche Bank said in
a statement on Tuesday.
Before joining UniCredit in 2008, Faruque worked in several
senior legal positions at Merrill Lynch in London. She will
assume her responsibilities on Dec. 1.
(1 US dollar = 0.7482 euro)
(Editing by Erica Billingham and Mark Potter)