As we have said here previously, Rolf Breuer should have gone a long time ago.
He has flown in the face of good governance for a long time now. Firstly, he moved up to Chairman from his previous CEO position. Then he begins collecting charitable and company board positions as if the were trophies and, at over 60 of them, ended up being a seat warmer more than a contributor, if he ever was a contributor.
Finally, he resisted but the courts appear to be holding him to account for shooting his mouth of, as if he was untouchable and omnipotent, thereby sinking any hope that the Kirch group had of obtaining the refinancings then required.
As I recall the matter, and it was a while ago, the Kirch group approached Deutsche Bank for a refinancing and the bank obviously decided that it was not worth the risk. They could have turned the opportunity down and shut up, as used to be done in the markets in my day. Mr Breuer decided that he could answer a journalist's question about his opinion on Kirch's financial situation and he made a comment which, when I heard it, made me conclude that Kirch was done for.
I had not seen any numbers or been privy to any details, but when one of his leading banks says something like he cannot see how anyone would fund this group, the Kirch group was definitely a gonner.
Of course, Breuer and Deutsche Bank are surely saying to the court that the Kirch group was done for even without the Brauer comment but, at least those like me that were not in the loop, the comments diseminated that dire situation of the Kirch group.
I am not a lawyer and have not followed the case so have no comment on its merits either way, but I welcome Breuer's departure as a good governance event for Deutsche Bank.
Onésimo Alvarez-Moro
See article:
Rolf Breuer, the veteran German banker, resigned unexpectedly last night as supervisory board chairman of Deutsche Bank, triggering a management reshuffle that further Americanises Germany's biggest bank.
Clemens Börsig, finance director and strong ally of Josef Ackermann, chief executive, is to succeed Mr Breuer. That appeared likely to strengthen the hand of Mr Ackermann, whose contract was recently extended until 2010. Mr Breuer's departure ends an era in German finance. In the past year he has also surrendered his position as chairman of Deutsche Börse after he and Werner Seifert, the German stock exchange's former chief executive, were confronted with the most notorious shareholder revolt in German corporate history.
Deutsche said yesterday his decision to go was related to a court ruling in a legal case brought against him by Leo Kirch, the media baron. Mr Breuer wanted to avoid "further discussion regarding him personally".
See full Article (paid subscription required).
See also: Rolf Breuer should go.
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