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Bank said to plan defector suit
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July 2, 1999: 7:57 a.m. ET
Report: Deutsche Bank to act against four bankers who switched to rival
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LONDON (CNNfn) - Deutsche Bank plans to take legal action against four senior bankers who led a defection of nearly half its U.S. healthcare team to rival Credit Suisse First Boston, according to a report published Friday.
Deutsche Bank (FDBK), Europe's second-largest bank after UBS of Switzerland, is pursuing the hard line against the former employees from its U.S. banking arm - Deutsche Bank Alex. Brown -- in order to deter other banks from engaging in similar poaching campaigns in the future, the Financial Times reported.
Credit Suisse First Boston claimed it had successfully recruited 24 employees from Deutsche's 50-person healthcare unit, including seven research analysts and 17 investment bankers, the FT reported.
CSFB, a U.S.-Swiss investment bank that operates as a subsidiary of the Credit Suisse Group, had been hoping to lure away all of the unit's employees, according to the newspaper.
The paper said CSFB had declared a truce in the poaching war, though "it would remain open to talk to any Deutsche Bank healthcare staff who change their minds."
Deutsche Bank, for its part, is said to be taking the legal action to prevent the senior bankers among the defectors from beginning work at CSFB until next year.
Both banks are yet to resolve their differences over the remaining group of defectors, the FT reported. It remained unclear how much CSFB offered the departing Deutsche professionals, and how much of a premium, if any, the pay package represented over what they had been receiving at Deutsche Bank.
Deutsche's decision comes several days after Frank Newman -- chief executive of the U.S.-based Bankers Trust acquired by Deutsche earlier this year -- announced his departure amid reports he had been rebuffed in his bid for a top management post at the merged entity.
Officials at Deutsche Bank and Credit Suisse could not immediately be reached for comment Friday.
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