Deutsche Bank AG revealed during an extraordinary meeting in Frankfurt that the Supervisory Board of the company decided to restructure the bank's business division and reorganize the executive committee and senior management, according to a press release issued by Deutsche Bank.
The bank's restructuring and reorganization will enable it to meet client demands and requirements of supervisory authorities.
Deutsche Bank said in the press release that they will be splitting the Corporate Banking & Securities (CB&S) into two business divisions.
The bank will combine the Corporate Finance Business of the CB&S with the Global Transaction Banking and create a new business division called Corporate & Investment Banking while the sales and trading activities of the CB&S will be combined in the newly created Global Markets business division.
Deutsche Bank also said in the press release that the Corporate & Investment Banking division will be headed by Jeff Urwin, the current co-head of CB&S, and Garth Ritchie, the current head of equities, will run the Global Markets division.
The CB&S division will cease to exist after the restructuring, which will take effect on January 1, 2016.
Aside from the restructuring its business division, Deutsche Bank will also be conducting broad-based changes in its key management roles, according to the press release.
The bank will be abolishing the Group Executive Committee as well as ten of its current 16 Management Board committees.
Deutsche Bank said in the press release that all four core business divisions will be represented directly on the Management Board.
Colin Fan, the co-head of the CB&S division with Urwin, will be stepping down, effective on October 19, 2015.
Deutsche Bank adds in the press release that Stefan Krause, Stephan Leithner, and Henry Ritchotte will also be leaving the bank's Management Board.
Michele Faissola, the head of Deutsche Asset & Wealth Management, will be leaving the bank after a transition period.
Paul Achleitner, the chairman of the Supervisory Board, said in the press release that the bank "rarely underwent such a fundamental reorganization in its history."
"I would like to stress that all parties involved have tried to achieve the best possible outcomes for Deutsche Bank, having set aside personal interests," he said. "For this, and for their contributions in the past years, we would like to thank those executives leaving the company."
Reuters adds that John Cryan, the CEO of Deutsche Bank, has been under pressure to reform the bank.
Deutsche Bank's valuation has been pushed below rivals such as UBS and Credit Suisse due to costly litigation from a series of scandals and the fallout from the Asian market rout.
Reuters adds that the bank's changes are part of a wide-ranging restructuring at European investment banks.
The new bosses of Europe's biggest banks responded to the pressure of devising new strategies to revive their respective banks with thousands of job cuts, business closures, and raising billions of euros of capital.
