Deutsche Bank AG DB 0.99 % ’s investment-bank co-head responsible for securities trading, Colin Fan, is moving out of that position, the most senior change-up in a key business as a new co-chief executive embarks on a broad reorganization, according to people familiar with the matter.
The bank is in discussions to promote Garth Ritchie, currently global head of equities inside the investment bank, the people said.
The 42-year-old, Beijing-born Mr. Fan, who grew up in Canada, has been co-head of Deutsche Bank’s highest-profile and biggest division by revenue since 2012. He moved into the role when Anshu Jain became co-CEO of Deutsche Bank.
Mr. Jain left this summer with the arrival of former UBS Group AG finance chief John Cryan, who started in July and will become Deutsche Bank’s sole CEO next year.
Mr. Fan, who is based in London, wasn’t immediately reached. A Deutsche Bank spokesman declined to comment. Mr. Ritchie didn’t respond to requests for comment.
Deutsche Bank’s other investment-bank co-head is Jeff Urwin, a former J.P. Morgan Chase JPM 0.87 % & Co. senior banker who joined Deutsche Bank earlier this year. Mr. Urwin couldn’t immediately be reached.
Deutsche Bank executives are still discussing the planned structure and management of the investment-banking division, according to people familiar with the matter.
Mr. Ritchie, 47 years old, has been at Deutsche Bank since 1996 and has been equities co-head globally since 2009, and sole head since 2010.
The business of advising companies on mergers, buying and selling stocks, currencies and fixed-income securities, and clearing customers’ trades has defined Deutsche Bank’s profile across Europe, the U.S. and Asia. The investment bank has also stoked controversy, with traders and managers embroiling the bank in a wide range of investigations for alleged rigging of financial markets.
Analysts and investors have been expecting Mr. Cryan to shake up senior management ranks and committees as he confronts the difficult tasks of cutting costs in the investment bank, shedding businesses and boosting profitability.
Other senior departures are likely, according to people familiar with the matter, following ongoing discussions among Deutsche Bank directors and with BaFin, the German financial watchdog, which sharply criticized Mr. Jain and other executives for allegedly failing to stop years of attempted market manipulation.
Mr. Cryan internally has expressed a desire for new executives in key roles as the bank faces regulatory and financial challenges. It is also facing a new austerity including in the investment bank. Earlier this month, the lender warned it will take a €5.8 billion ($ 6.5 billion) charge on assets in its investment bank and retail- and private-banking operations for the third quarter and could cut or eliminate the company’s dividend this year.
As a result, Deutsche Bank said, it expects to report a loss of €6.2 billion on Oct. 29 when it reports third-quarter earnings and unveils sweeping strategy changes,
Mr. Fan joined Deutsche Bank in 1998 as a credit trader, and went on to oversee stock trading in Asia, structured credit trading and later all credit trading globally. He rose quickly inside the investment bank, becoming a managing director when he was just 28 years old.
He drew public attention last year when he admonished employees in an internal video for reputation-damaging behavior, warning them that all of their communications were being reviewed. The video became public. “Let’s be clear. Our reputation is everything. Being boastful, indiscreet and vulgar is not OK,” Mr. Fan said in the video. “It will have serious consequences for your career, and I have lost patience on this issue.”
New regulatory headaches have continued to surface, however. Analysts and investors say one of the thornier challenges Mr. Cryan and his leadership team face is restoring credibility with regulators.
Write to Jenny Strasburg at [email protected]