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Ex-BT boss leaves Deutsche
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June 29, 1999: 10:25 a.m. ET
Newman resigns on 'amicable' terms; didn't get management post
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LONDON (CNNfn) - Frank Newman, former Bankers Trust chief executive, resigned Tuesday from Deutsche Bank -- which acquired BT earlier this year -- in what was described as an "amicable" move.
"I concluded that the role originally envisioned for me will not be necessary," said Newman in a statement.
At the time of Deutsche's takeover, Newman was promised a position on the management board, although recent reports suggested opposition among Deutsche's senior management to his appointment.
The bank made no mention of any severance paid to Newman, although some reports have suggested he has picked up around $100 million.
The stock market gave a warm welcome to the news - although it had been rumored for several days. Deutsche stock rose more than 2 percent to 58.10 euros.
"This sends the message [to Bankers Trust employees] that it's Deutsche Bank now," said Brian Crossley, European banking analyst at ABN Amro in London. "This clears the way for Deutsche to have greater influence over Bankers Trust."
The only cloud on the horizon is the possibility that Newman's departure will encourage other key individuals in Bankers Trust's investment banking operations to depart.
"The concern is how many others follow him out the door," said ABN Amro's Crossley.
As for Newman himself, Deutsche's statement said he will "devote his future time on new projects". "Basically, the guy was left with nothing to do," said Crossley.
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Deutsche Bank
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