(Title repeat) (Updated with details, statements by Asoka Wöhrmann, clarifications)
by Tom Sims, Frank Siebelt and Paul Carrel
BERLIN, June 1 (Reuters) – The chief executive of Deutsche Bank’s asset management subsidiary DWS will step down on June 9 and be replaced by Stefan Hoops, the asset manager said on Wednesday.
This announcement comes the day after a search of the two companies as part of an investigation into suspicions of deception linked to the ESG classification of certain investment products, a new setback for the German bank, which has already paid heavy fines related to suspected money laundering.
Authorities in Germany and the United States are investigating on the basis of information gathered and accusations from a whistleblower that the asset manager has wrongly classified certain products as investments classified as “sustainable”, a practice known as the name “greenwashing”.
DWS and Deutsche Bank (DB) said the asset manager had cooperated with authorities and regulators in the past and would continue to do so. DWS repeated that it denied misleading investors.
The departure of Asoka Wöhrmann, under pressure on several fronts, had been under consideration for some time, but the decision was finally made during meetings held on Tuesday evening, following the searches earlier in the day, said a source familiar with the matter.
“The accusations (..), however baseless or indefensible they may be, have left their mark,” Asoka Wöhrmann said in a memo to employees seen by Reuters.
“It’s not just about replacing a man,” said Desiree Fixler, the whistleblower involved in the investigation, citing “a huge culture problem at Deutsche Bank”.
As soon as his appointment is effective from June 10, Stefan Hoops will step down as head of DB’s Corporate Bank division to replace Asoka Wöhrmann as chairman of the board, DWS said in a statement. (Report Paul Carrel, Tom Sims and Frank Siebelt, with the contribution of Anna Pruchnicka; French version Augustin Turpin and Diana Mandiá, edited by Kate Entringer and Jean-Michel Bélot)