FRANKFURT - The Schneider property scandal yesterday claimed its first boardroom victims at Deutsche Bank, when two top managers of the bank's mortgage arm resigned, writes John Eisenhammer.
The departure of Detlev Rode, with over 20 years' experience on Deutsche Centralboden's board, and Jurgen Huvendick, a board member for 15 years, came ahead of a meeting by Deutsche Bank's supervisory board next Tuesday to consider management changes as a result of the large losses inflicted by the collapse of the Schneider empire.
Deutsche Bank said an independent auditor's report had pinpointed the two Centralboden executives as bearing the main responsibility for errors of judgement.
Centralboden is the single biggest creditor to the Schneider group, accounting for nearly DM1bn ( pounds 408m) of Deutsche Bank's total of DM1.3bn in loans.
Deutsche Bank officials said further managerial departures were expected, probably at the bank's Mannheim branch, where the first contacts with Mr Schneider were made. The branch provided DM155m of credits to the developer on its own account.
Hilmar Kopper, chief executive of Deutsche Bank, has pledged that the auditor's report will be published as written, probably next week.
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