Dec. 9 (Bloomberg) -- Deutsche Bank AG hired Thomas Poppensieker, the head of McKinsey & Co.’s risk management practice in Germany, to boost risk controls as it grapples with lawsuits and regulatory fines that are eroding profit.
Poppensieker, 43, will take up the newly created position on Jan. 1, reporting to co-Chief Executive Officers Anshu Jain and Juergen Fitschen, Frankfurt-based Deutsche Bank said in an e-mailed statement today. He will be responsible for strengthening the controls that form the core of the company’s Strategy 2015+ program, it said.
Deutsche Bank was fined 725 million euros ($995 million) by the European Union last week for manipulating rates linked to Libor, the biggest of a total 1.7 billion euros in penalties levied at six firms. Deutsche Bank’s third-quarter profit slid 94 percent after it increased by 1.2 billion euros to 4.1 billion euros its reserves against litigation linked to Libor, the mis-selling of U.S. mortgage-backed securities and its alleged role in a German media company’s collapse.
Poppensieker, who is also responsible for McKinsey’s European banking risk practice and its market and trading risk service line, advised the EU on new banking regulations and capital adequacy requirements known as Basel III.
Strategy 2015+ is a program introduced in September 2012 aimed at lifting profit and reducing risk as Europe’s biggest investment bank by revenue takes steps to meet the capital requirements laid out under Basel III and save 4.5 billion euros a year by 2015.
To contact the reporter on this story: Angela Cullen in Frankfurt at email@example.com