Deutsche Bank Creates New Post To Tighten Controls

Reuters

Deutsche Bank created a new senior position to govern compliance and risk management throughout the group and named a top McKinsey consultant to fill it, less than a week after EU officials fined Deutsche and other banks for rigging interest rates.

Deutsche Bank on Monday named 43-year-old Thomas Poppensieker as head of a new effort to tighten controls at Germany's flagship lender, reporting directly to co-Chief Executives Juergen Fitschen and Anshu Jain.

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The move comes as Deutsche Bank pursues an ambitious cultural transformation plan led by Fitschen and Jain, and as it works through a long list of scandals, investigations and fines that came in the wake of the financial crisis.

Improving controls in standard-setting, accounting, regulation, compliance and a host of other vital functions is a central part of that transformation, Deutsche said in a statement. The bank has, for example, already established a new code of behavior and early warning system for traders.

In addition to his current position as director at McKinsey & Company in Munich, Poppensieker is a member of the Executive Board of the Frankfurt Institute of Risk Management and Regulation and has advised the European Commission on regulation including Basel III.