FRANKFURT: Regulators are pressing Deutsche Bank CEO Christian Sewing to relinquish day-to-day oversight of its sprawling investment bank, two people with knowledge of the matter said.
Deutsche Bank declined to comment on Sewing's role or any conversations with the ECB on the CEO giving up direct control of the investment banking division. The alleged wrongdoing happened as recently as last year, and stretched back to at least 2018, one of those sources said, which would put it under Sewing's watch.
Such power can be significant, however, because a good working relationship with the powerful central bank is critical for running the bank. ECB supervisors make decisions on capital requirements, dispatch auditors to lenders and have sway over bonus and dividend payouts. Regulators made their concerns known at the time and were assured that the setup would be temporary in order to put a new management structure in place but Deutsche has since taken no action, the sources said.