Deutsche Bank debauchery of Natixis’ chief risk officer

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Deutsche Bank has hired Olivier Vigneron from French rival Natixis to replace Stuart Lewis as chief risk officer, the German lender said on Sunday.

Winemaker, who for more than a decade until 2019 held various management positions at JPMorgan, will start in March next year and become a member of the board in May.

The announcement follows Friday’s announcement that former Aegon chief executive Alex Wynaendts, a non-executive director of Citigroup, Uber and Air France-KLM, is expected to become the bank’s new chairman in May at the end of of Paul Achleitner’s second five-year term.

Winemaker, holder of an engineering degree from the Ecole Polytechnique de Paris and a doctorate in economics from the University of Chicago, began his banking career in 2000 as a credit derivatives trader at Goldman Sachs, followed by a three-year stint at Deutsche Bank. He joined JPMorgan in 2008, then joined the risk department after four years at the credit derivatives trading desk.

Winemaker was part of the team that investigated the “London Whale” scandal in which JPMorgan suffered a loss of $ 6.2 billion due to “serious” business activity. He then agreed to pay $ 920 million in penalties and admitted securities law violations to US and UK regulators for oversight.

He was hired at the end of 2019 by Natixis, which at the time suffered from serious shortcomings in its risk management. The French bank was hit by heavy losses in Asia in 2018, when so-called autocall derivatives sold to retail investors and private banking clients turned sour.

A year later, the Financial Times revealed that Natixis’ London-based asset management subsidiary, H2O, had invested more than a billion euros of investor money in illiquid bonds linked to Lars Windhorst, a financier controversial German. Natixis announced this year its intention to sell its majority stake in H2O.

“Olivier brings the global expertise and perspective to assess and manage all types of risk and to maintain Deutsche Bank’s strong track record in risk management,” CEO Christian Sewing said on Sunday.

Under Lewis, whose departure was announced as part of a larger management reshuffle this year, Deutsche Bank has dodged major financial scandals of recent years. In March, the lender managed to unwind its € 3.4 billion exposure to Archegos without losses as the family office collapsed. In contrast, Swiss lender Credit Suisse suffered a loss of $ 5.5 billion from Archegos.

Deutsche Bank stayed away from Greensill and prematurely pulled out of a € 150m margin loan to Wirecard CEO Markus Braun before the company imploded, and had covered the major part of its 80 million euro loan exposure to the company.

Achleitner said on Sunday that Lewis “has been instrumental in putting top-notch risk controls in place for our bank and has led Deutsche Bank safely through very difficult times.”


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