NEW YORK (TheStreet) -- John Cryan, Deutsche Bank's (DB) newly appointed CEO, has his work cut out for him. Fortunately, his track record shows messes are precisely the type of work Cryan is best suited for -- he was named CFO at UBS (UBS) in 2008 and earned a reputation for steering the bank through the financial crisis.
Cryan will become a co-CEO of Deutsche Bank on July 1 and hold the post on his own after the bank's shareholder meeting in May 2016. As for his co-CEO predecessors, Anshu Jain's resignation is effective at the end of this month, though he will continue as a consultant through January, and Jürgen Fitschen's resignation will take effect after the 2016 meeting.
Jurgen and Fitschen announced their departures on Sunday. During their three-year tenure, the bank faced a variety of challenges including regulatory probes. In April, the Frankfurt-based bank agreed to pay $2.5 billion to U.S. and U.K. investigations of its role in fixing benchmark rates. While many banks paid hefty fines for misdeeds, they also set aside appropriate reserves for legal fees and were able to deliver pre-recession era earnings. Deutsche Bank's 2014 earnings were 74% lower than before the financial crisis.
Perhaps the true sign that it was over for the co-CEOs came in May at the bank's annual shareholder meeting, where only 61% of investors voted in favor of the management team. Shareholder dissatisfaction did not go unnoticed. The bank responded by shuffling around some of its management soon afterward.
"The public image of Deutsche Bank is heavily tarnished and damaged," Deutsche Bank's Chairman Paul Achleitner said at the meeting. "No one can be satisfied with the public image and share-price performance."
While it may take time for Deutsche Bank stock to reach its former highs, the company has already benefited from the announcement of Cryan's hiring. Shares climbed 4% to 28.64 euros in Frankfurt on Monday, and gained 4.6% to $32.05 as of midday in New York.