Regulators reject Qatari-backed Deutsche Bank board member: sources

This post was originally published on this site

https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEF990VD_L.jpg

FRANKFURT (Reuters) – In a rare intervention, Deutsche Bank’s (DE:) regulators are blocking a banker backed by its largest shareholder, Qatar, from a seat on the supervisory board because of a conflict of interest, according to two people with knowledge of the matter.

The rejection is a further hiccup for the German lender, which has reshuffled management, is cutting thousands of jobs and closing down some businesses in an effort to make a profit.

Deutsche Bank chair Paul Achleitner had announced in August the appointment of former UBS (S:) manager Juerg Zeltner, praising him as a valuable addition and “a top-level European banker with proven expertise”.

Zeltner was also to represent the interests of Qatar’s royal family – a top shareholder in the German lender. KBL is controlled by the same family.

Deutsche’s regulators – the European Central Bank and financial markets watchdog BaFin – have now determined that Zeltner’s position on Deutsche’s board would be a conflict of interest because he is also the chief executive officer of KBL European Private Bankers (KBL epb), a business that overlaps with Deutsche’s.

“It’s a done deal. It is now only a matter of finding a face-saving way out,” the person said.

Deutsche Bank declined to comment.

The bank said last month in a statement that all potential conflicts of interest that could arise from Zeltner’s activities and his relationship with one of Deutsche’s major shareholders had been reported to the supervisory board and the company.

“They were reviewed by the Nomination Committee and considered to be low,” Deutsche said at the time.

Achleitner chairs the committee that recommends new board members who represent shareholders.

The ECB, BaFin, KBL and a spokesman for Zeltner declined to comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment