Deutsche Bank AG (DBK) named Richard Herman as co-head of fixed-income and currency trading alongside Zar Amrolia, according to a person briefed on the matter.
Herman, 43, who has run the institutional clients group since 2008, will move to New York from London, said the person, who asked not to be identified speaking about personnel. The move was announced in an internal memo sent yesterday to employees by Colin Fan, 40, and Robert Rankin, 50, who oversee trading and investment banking, the person said.
Anshu Jain, 51, co-chief executive officer of Germany’s biggest lender, said last month that the firm is facing a challenging year after a surge in legal costs and lower debt-trading revenue spurred a surprise fourth-quarter loss. Deutsche Bank, along with competitors including Zurich-based UBS AG (UBS:US), has also faced regulatory inquiries into potential manipulation of interest rates and currencies.
“We see fixed income as a core franchise at Deutsche Bank and we remain committed to it,” Jain said last month on a conference call with investors.
Deutsche Bank’s investment-banking and trading unit saw revenue slide 27 percent to 2.46 billion euros ($3.33 billion) in the fourth quarter from a year earlier. The decline was led by a 31 percent drop in debt-trading income. Ari Cohen, a spokesman for Deutsche Bank in New York, declined to comment.
The fourth-quarter pretax loss of 1.15 billion euros included 528 million euros in litigation-related expenses as well as costs tied to the Frankfurt-based bank’s reorganization.
Wayne Felson, 42, who was co-head of the business with Amrolia, 50, will take a new role focusing on risk, capital and technology within the trading division, the person said.
Garth Ritchie, 45, who runs equity trading globally, will also assume responsibility for equity sales, according to the person. John Pipilis, who is in charge of debt sales and structuring in Europe, will now report to Fan instead of Herman, the person said.
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