Bosses To Quit Scandal-hit Deutsche Bank

Deutsche Bank (Xetra: 514000 - news) 's two chief executives have resigned following a number of scandals related to rate rigging and misselling.

Chief executive Anshu Jain will leave at the end of this month and be replaced by John Cryan, while his counterpart Juergen Fitschen will remain in his post until after the company's AGM in May 2016.

In April the bank was hit by a $2.5bn fine for rigging LIBOR - the London Interbank Offered Rate, which is a key benchmark interest rate used as the basis for millions of financial transactions every day.

The record penalty was the latest blow to the bank's reputation after high-profile investigations into interest rate manipulation, misselling of derivatives, tax evasion and money laundering.

The German bank had presented a management shakeup last month but has decided to make more radical changes to restore confidence in its senior leadership.

The incoming chief executive Mr Cryan, 54, has been on the bank's supervisory board since 2013 and was a former chief financial officer of UBS (NYSEArca: FBGX - news) .

Under the new structure there will no longer be co-chief executives. Instead Mr Cryan will become the sole CEO when Mr Fitschen steps down next year.

Following the announcement of his appointment, Mr Cryan insisted there was a lot of hard work ahead not only in restoring customer confidence but also in simplifying the bank's business model and making it more transparent.

"Our future will be defined by how well we deliver on strategy, impress clients and reduce complexity," he said in a statement.

Mr Cryan was heavily involved in the bank's new strategy blueprint, so is not expected make significant changes to it.

The strategic plan has come under fire from investors for not being radical enough.

However Guy Foster, head of research at analysts Brewin Dolphin (LSE: BRW.L - news) , told Sky News that Mr Cryan's appointment showed intent from Deutsche Bank that they were looking to make timely changes to their business model.

He said: "It is a move that investors wanted to see and shows that the bank is keen to grab the nettle on this restructuring. Following the management changes, I expect to see a clearer focus and the strategy to simplify the business."

Mr Foster said the rise in share price following the announcement showed a sense of optimism from investors. The bank's shares were up 8% on early trading today.