Tim Dowling, who oversaw market risk for Deutsche Bank AG’s structured finance and non-core unit, has left the firm, two people with knowledge of the move said.
Dowling, who joined Germany’s largest lender in 1997 from JPMorgan Chase & Co. and worked in New York, retired this month, the people said, declining to be identified because the details are private. He’s being replaced by Daniel Britz, who will be based in London, one person said.
Deutsche Bank has been shedding assets at the non-core unit, which fell to 46 billion euros ($61.5 billion) at the end of June from 61 billion euros at the end of 2013. Chief Financial Officer Stefan Krause told analysts on July 29 that the unit has been among the best performances “on the Street.”
Dowling, who has held positions at the firm including supervising market risk for the Americas and worked within the firm’s risk control unit, declined to comment when reached by phone, as did a company spokeswoman.
The departure isn’t related to concerns raised by regulators who have pushed banks to improve controls, one of the people with knowledge of the moves said. Britz will report to David Stevens, global head of market risk management, another person said.
Deutsche Bank and European competitors are seeking to strengthen internal oversight amid industry-wide probes into market manipulation, hiring practices and other suspected wrongdoing. The Frankfurt-based company, led by co-chief executive officers Anshu Jain, 51, and Juergen Fitschen, 65, has said it’s investing 1 billion euros to overhaul systems and controls. It will add about 500 people in compliance, risk and technology in the U.S. by year-end, Jacques Brand, head of Deutsche Bank North America, said last month.
The firm has faced pressure from the Federal Reserve Bank of New York over the quality of reports to regulators as U.S. authorities scrutinize risks posed by foreign banks. The New York Fed sent Deutsche Bank a letter in December saying errors in reports show a need to improve oversight at its U.S. operations, Jordan Thomas, a lawyer representing a former Deutsche Bank employee who has accused the company of masking losses, said last month.
Starting in 2016, foreign banks with $50 billion of assets in the U.S. will have to hold more capital to avoid taxpayer-funded bailouts in a crisis. The rules will force the largest foreign firms to consolidate U.S. operations into one subsidiary and abide by the same capital and liquidity minimums as domestic peers.