Impact of Deutsche Bank executive's death

The bank says the restructuring will not be delayed

Following a weekend of mourning, the banking community was on Wednesday trying to assess the impact of the accidental death of the senior Deutsche Bank executive, Edson Mitchell, 47, only days after the bank announced ambitious restructuring plans.

Edson Mitchell: praised by Deutsche Bank

Mitchell had been seen by many as the main engine behind the drive to make investment banking a core activity for Germany's largest bank.

"It was with deep sadness that I heard of Edson's tragic death. He has contributed substantially to the group's success in recent years," Deutsche's chief executive and chairman Rolf Breuer said in a statement.

The foundations Mitchell had laid would continue to serve the bank in the future, Breuer added.

A rising star

Mitchell became a member of the bank's board of directors in June 2000, and he had been destined for promotion to one of the top jobs in the bank.

"He would have been one of the stars and it will be extremely difficult to find an external replacement for him," said Dirk Bartsch, an analyst at DIT, Dresdner Bank's investment fund.

Mitchell was close to Deutche's head of investment banking, Josef Ackermann - the man expected to succeed Breuer as chairman and chief executive.

Together, Ackermann and Mitchell, who were co-heads of the Global Corporates & Institutions division of the bank, were credited with making Deutsche one of the world's leading investment banks.

Mitchell was the expected heir to Ackermann's job as head of the investment bank once he was promoted to the top job.

But first he was destined to head up the new Companies and Institutional Clients division, following the completion of Deutsche's restructuring plans.

This would have left him in charge of a division that would be contributing more than half of Deutche Bank's pre-tax profits.

Impact

Analysts were divided about how Mitchell's death would affect the bank's strategy of building further on its profitable investment banking business and raising the profile of its retail arm.

The bank itself said the restructuring would not be delayed, and several analysts saw no need for a change in strategy.

"I don't see them changing their plans. They've turned Deutsche into one of the world's top investment banks in just a couple of years," one analyst said.

But other bankers disagreed.

"It is a blow for Deutsche and for their strategy. This will cause considerable uncertainty among investment bankers and the headhunters will already be on Deutsche's doorstep," said one Frankfurt banker.

Ackermann is expected to remain in charge of the investment banking operations. Mitchell is not expected to be replaced immediately.

Mitchell had been travelling for a Christmas holiday when his plane crashed in Maine in the United States on December 22. The pilot also died in the crash.

Deutsche Bank shares Deutsche Bank closed 1.35 euros higher at 87.95 despite the death.