Deutsche Bank AG, the world's second-largest banking company, has named Mayo A. Shattuck III global head of its private banking division and one of 10 directors of the bank's Private Clients and Asset Management Group's board.
Shattuck, co-chairman and chief executive officer of Deutsche Banc Alex. Brown Inc., acknowledged that the moves were announced internally yesterday but declined to confirm a report from bank sources that he also will become Private Clients and Asset Management Group' CEO for the Western Hemisphere.
Though he will relinquish his job as co-head of Deutsche Bank's global investment banking operations, Shattuck, 46, will continue as head of Alex. Brown and remain the Frankfurt, Germany-based bank's senior investment banker in the United States.
"It is an exciting opportunity for me with a lot of resources and an open playing field," Shattuck said yesterday.
"I look forward to the opportunity."
The reshuffling is the result of a companywide restructuring Deutsche Bank announced in December to streamline its operations from five divisions to two.
Deutsche Bank created the Corporate and Investment Banking Group, specializing in investment banking, corporate lending and mergers and acquisitions.
The second division, the Private Clients and Asset Management Group, focuses on providing financial services to individuals, including brokerage, retail banking and private banking for wealthy clients.
"It is a significant promotion for Mayo," said George P. Stamas, vice chairman of Deutsche Banc Alex. Brown and managing director.
"He is thought of extremely well by the bank. He essentially has added to his responsibilities. Clearly, the Baltimore offices are faring extremely well in this restructuring."
Also yesterday, Deutsche Bank, which reported annual earnings, announced that it will cut 2,600 jobs from its 93,000 employee work force and disclosed that its fourth-quarter profit fell.
The company did not give details of its fourth quarter, but, according to Bloomberg News calculations, profit fell 7 percent in the three-month period to about $544.5 million.
The company said that profit more than doubled last year to $4.6 billion.
Shattuck said employees in Baltimore would not be affected by the reduction in jobs.
As global head of private banking, Shattuck will supervise 7,500 employees.
As chief executive of the Private Clients and Asset Management Group in the Americas, he will oversee more than 2,000 additional employees.
In an internal memo to employees yesterday, Rolf-E. Breuer, Deutsche Bank's chairman, described the Private Clients and Asset Management Group as "clearly the growth story of Deutsche Bank going forward."
Banks and brokerage houses are driving harder into the asset and wealth management business because they see a huge market for those services as baby boomers retire from their jobs and inherit money from their parents.
Shattuck will report to three top Deutsche Bank executives, including Breuer, who heads the Private Clients and Asset Management Group.
Shattuck, who is known for his connections to top technology executives, joined Alex. Brown in the company's San Francisco office as an investment banker in November 1985.
He was named managing director of the San Francisco office in 1989, and two years later he was promoted to president and chief operating officer and moved to Baltimore.
In April 1997, he and A. B. "Buzzy" Krongard, then Alex. Brown's chairman and chief executive officer, negotiated the sale of Alex. Brown to New York-based Bankers Trust Corp. Nineteen months later, Deutsche Bank agreed to buy Bankers Trust, including Alex. Brown.