Deutsche Bank has named its third Americas chief executive in less than 18 months, promoting the head of its global equities business to the prominent New York-based role, according to an internal memo sent to employees.
Tom Patrick replaces Bill Woodley, who is leaving the German lender, according to the memo, signed by chief executive John Cryan. The contents were confirmed by a spokeswoman.
In his new Americas role, Patrick will report to Cryan. Patrick will continue as global equities chief and co-head of the US corporate and investment bank under Garth Ritchie, London-based co-head of the investment bank globally.
As Americas CEO, Patrick takes on complex legal, political and regulatory matters in a crucial market for the German bank. It is trying to reinvigorate its trading and investment-banking businesses under tighter controls by US bank watchdogs, and faces a bright spotlight over its loans tied to President Donald Trump.
The churn in executives overseeing Deutsche Bank’s sprawling US business started in May 2016. That is when the bank said long-time banker Jacques Brand was leaving after a career at the bank that started before it bought US lender Bankers Trust in 1999. Brand left to join boutique investment bank PJT Partners.
In July 2016, Woodley was named Americas CEO, which put him in charge of Deutsche Bank’s newly-formed US holding company, subject to stricter oversight by the Federal Reserve. Woodley reported to Jeff Urwin, who at the time ran the global investment bank. Last summer, Urwin took on expanded duties as the management-board member overseeing US operations. He left Deutsche Bank less than a year later.
Cryan in Tuesday’s memo called Woodley’s 19-year Deutsche Bank career “long and successful”. The memo did not specify Woodley’s plans, and he could not be reached for comment. Cryan this year has been spending more time in the US, including on client trips, than he did initially after being named CEO in mid-2015, according to people familiar with the matter.
Patrick joined Deutsche Bank in 2012 after 18 years at Bank of America Merrill Lynch. At Deutsche Bank, the equities business he oversees has struggled for months from a loss of clients and lagging revenue, which the bank has blamed in part on turmoil over concerns last year about the bank’s capital cushion and mounting legal fines.
The capital concerns have abated, but the bank’s efforts to win back stock-trading clients have produced disappointing results so far.
Deutsche Bank faces an unresolved US Justice Department investigation into billions of dollars in Russian stock trades. Democratic US lawmakers repeatedly have demanded, unsuccessfully, that Deutsche Bank hand over details of its more than $300m in loans to entities affiliated with Trump and provide details about the bank’s Russia business, any potential ties to Trump and related internal probes.
Deutsche Bank has rebuffed the lawmakers’ requests, saying it seeks to cooperate with formal congressional or regulatory inquiries, but that bank-confidentiality rules prohibit it from revealing details about its clients or business outside of formal inquiries.
At the same time, US investigators are looking for possible ties between Russian financial institutions, Trump and anyone affiliated with him. Trump has repeatedly denied any collusion between his campaign and Russia. Russia has denied interfering in the 2016 elections.
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This article was published by The Wall Street Journal