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Wednesday, December 1, 2021

Deutsche Bank poached chief risk officer from Natixis

Deutsche Bank announced on Sunday that Deutsche Bank has hired Olivier Vigneron of French rival Natixis to replace Stuart Lewis as chief risk officer.

Vigneron held various senior risk positions at JPMorgan Chase for more than a decade before 2019. He will join in March next year and become a member of the executive board in May.

The announcement comes on Friday announcing that former Aegon CEO Alex Wynaendts (non-executive director of Citigroup, Uber and Air France-KLM Group) will become the bank’s new bank at the end of Paul Achleitner’s second five-year term in May. Announced after the chairman.

Vigneron holds an engineering degree from the Ecole Polytechnique de Paris and a doctorate in economics from the University of Chicago. He started his banking career as a credit derivatives trader at Goldman Sachs in 2000 and then worked at Deutsche Bank for three years. He joined JPMorgan Chase in 2008 and worked in the credit derivatives trading department for four years before moving to the risk department.

Vigneron was a member of the team investigating the “London Whale” scandal, in which JPMorgan Chase suffered a loss of US$6.2 billion due to “bad” trading activities. It later agreed to pay a fine of US$920 million and admitted to U.S. and U.K. regulators to violate securities laws due to regulatory errors.

He was hired by Natixis at the end of 2019, when the company’s risk management was seriously flawed. The French bank was hit hard in Asia in 2018 when the so-called automatic collection derivatives sold to retail investors and private bank customers deteriorated.

A year later, the “Financial Times” disclosed that Natixis’ London-based asset management subsidiary H2O had invested more than 1 billion euros in investor funds in illiquid bonds related to the controversial German financier Lars Windhorst. Natixis announced this year that it intends to divest its majority stake in H2O.

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

Under Lewis’s leadership, Deutsche Bank has avoided major financial scandals in recent years, and Lewis’s departure is part of a broader management reorganization this year. In March of this year, following the closure of the family office, the lender managed to lift its 3.4 billion euro exposure to Archegos without loss. In contrast, Credit Suisse lost $5.5 billion due to Archegos.

Deutsche Bank ignored Greensill and withdrew its 150 million euro margin loan to Wirecard CEO Markus Braun before the company went bankrupt, and has hedged most of the risks of its 80 million euro loan to the company. .

Achleitner said on Sunday that Lewis “played a vital role in establishing first-class risk control for our bank and led Deutsche Bank through some very challenging times safely.”

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