Dresdner Kleinwort
Encyclopedia
Dresdner Kleinwort was a British
-based investment bank: it disappeared as a brand from the world of investment banking in September 2009, when its remaining businesses adopted the Commerzbank
branding.
was acquired by Dresdner Bank
. It added global reach through the acquisition of the US investment bank Wasserstein Perella
in 2001 (from Bruce Wasserstein
). The Frankfurt
branch of the bank was instrumental in initiating trading in emissions credits in 2003.
In 2004, the Russian government hired Dresdner Kleinwort to value Yukos
's Yuganskneftegaz
which was later sold to Russian state oil major Rosneft
.
In January 2006, the bank became the target of a $1.4 billion class action suit by six employees alleging bias and systematic discrimination against female workers.
, who was in the process of acquiring Dresdner Bank
, decided to close its Mergers & Acquisitions Unit. Then in March 2009 it became clear that the office in Japan
would close. It also became clear that the capital markets and equities units would close and that advisory work would only be undertaken for Commerzbank's German
clients.
In February 2009 the Commerzbank management announced that no bonuses would be paid across the Commerzbank group including Dresdner Kleinwort. This was clarified to mean that Front Office staff would receive 10% of the bonus promised December 2008 and support functions would receive their full bonus.
This, together with issues regarding severance payments and guaranteed bonus payments, has led to a number of lawsuits. In general, Commerzbank has claimed it is not morally obliged to pay bonus payments for failure, while those suing have claimed that they are contractually obliged regardless of the overall finances and/or that their specific parts of Dresdner Kleinwort made money.
In September 2009 Commerzbank decided to abandon use of the Dresdner Kleinwort name, though the legal actions resulting from the bonus issue is likely to keep it in the public eye for some time.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based investment bank: it disappeared as a brand from the world of investment banking in September 2009, when its remaining businesses adopted the Commerzbank
Commerzbank
Commerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
branding.
History
Dresdner Kleinwort was established in July 1995 when Kleinwort BensonKleinwort Benson
Kleinwort Benson is a leading Private Bank that offers a wide range of financial services to private and corporate clients from offices throughout the United Kingdom and Channel Islands. The bank has its headquarters on St George Street in Mayfair, and is supported by seven UK regional and two...
was acquired by Dresdner Bank
Dresdner Bank
Dresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :...
. It added global reach through the acquisition of the US investment bank Wasserstein Perella
Wasserstein Perella & Co.
Wasserstein Perella & Co. was an investment bank established by Bruce Wasserstein, Joseph R. Perella, Bill Lambert, and one other founder in 1988, former bankers at First Boston Corp., until its eventual sale to Dresdner Bank in 2000 for some $1.4 billion in stock...
in 2001 (from Bruce Wasserstein
Bruce Wasserstein
Bruce Jay Wasserstein was an American investment banker and businessman. He was a graduate of the McBurney School, University of Michigan, Harvard Business School, and Harvard Law School, and spent a year at Cambridge University...
). The Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
branch of the bank was instrumental in initiating trading in emissions credits in 2003.
In 2004, the Russian government hired Dresdner Kleinwort to value Yukos
YUKOS
OJSC "Yukos Oil Company" was a petroleum company in Russia which, until 2003, was controlled by Russian oligarch Mikhail Khodorkovsky and a number of other prominent Russian businessmen. After Yukos was bankrupted, Khodorkovsky was convicted and sent to prison.Yukos headquarters was located in...
's Yuganskneftegaz
Yuganskneftegaz
Yuganskneftegaz is a wholly integrated subsidiary of Rosneft that owns and operates the second largest oil production complex in Russia. It was formerly the most important production subsidiary of Yukos, but was expropriated by the Russian government and given to Rosneft, a state-owned...
which was later sold to Russian state oil major Rosneft
Rosneft
Rosneft is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin, across the Moskva river...
.
In January 2006, the bank became the target of a $1.4 billion class action suit by six employees alleging bias and systematic discrimination against female workers.
Closure and Legacy
In December 2008 CommerzbankCommerzbank
Commerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
, who was in the process of acquiring Dresdner Bank
Dresdner Bank
Dresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :...
, decided to close its Mergers & Acquisitions Unit. Then in March 2009 it became clear that the office in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
would close. It also became clear that the capital markets and equities units would close and that advisory work would only be undertaken for Commerzbank's German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
clients.
In February 2009 the Commerzbank management announced that no bonuses would be paid across the Commerzbank group including Dresdner Kleinwort. This was clarified to mean that Front Office staff would receive 10% of the bonus promised December 2008 and support functions would receive their full bonus.
This, together with issues regarding severance payments and guaranteed bonus payments, has led to a number of lawsuits. In general, Commerzbank has claimed it is not morally obliged to pay bonus payments for failure, while those suing have claimed that they are contractually obliged regardless of the overall finances and/or that their specific parts of Dresdner Kleinwort made money.
- Jens-Peter Neumann, former head of Capital Markets sued in Germany in April 2009 for 1.5 million euros in severance pay.
- Former senior managers Martin Newson, Eduardo Listorti and Michael Adams sued but settled out of court. Other executives (Areski Iberrakene, Efstratios Hatzistefanis, Kaveh Taleghani and Stefan Guetter) won their bonus suits against the bank in August 2009.
- Additional cases were brought by Dresdner Kleinwort executive committee members John McIntyre, Bertrand Pinel and Alberto Piedra in August 2009 seeking €11 Million.
- In September 2009, 72 former and current Dresdner Kleinwort front office employees sued for £30 million in disputed bonus payments.
In September 2009 Commerzbank decided to abandon use of the Dresdner Kleinwort name, though the legal actions resulting from the bonus issue is likely to keep it in the public eye for some time.
Notable current and former employees
- Bruce WassersteinBruce WassersteinBruce Jay Wasserstein was an American investment banker and businessman. He was a graduate of the McBurney School, University of Michigan, Harvard Business School, and Harvard Law School, and spent a year at Cambridge University...
, former chairman and CEO of LazardLazardLazard Ltd is the parent company of Lazard Group LLC, a global, independent investment bank with approximately 2,300 employees in 42 cities across 27 countries throughout Europe, North America, Asia, Australia, Central and South America... - Xavier RoletXavier Rolet-Early life and career:Rolet was born in Aix-les-Bains, France. He is the eldest of three children born to military parents. His early life was spent in Algeria and France. He served as a second lieutenant and an Instructor at the French Air Force Academy and earned an MBA from Columbia Business...
, London Stock Exchange Group, CEO - Sir David ClementiDavid ClementiSir David Cecil Clementi is a former Deputy Governor of the Bank of England. Clementi also holds positions on the boards of several large corporations, including Chairman of Prudential plc, one of Britain's largest insurance companies, and is a non-executive director on the board of governors of...
, PrudentialPrudential plcPrudential plc is a multinational financial services company headquartered in London, United Kingdom.Prudential's largest division is Prudential Corporation Asia, which has over 15 million customers across 13 Asian markets and is a top-three provider of life insurance in mainland China, Hong...
, Chairman (2002–2008) - Sir Adrian Montague, Friends ProvidentFriends ProvidentFriends Provident was an organisation offering life insurance based in the United Kingdom. It was founded as a mutual Friendly Society for Quakers, although it was demutualised in 2001 and became a publicly listed company, no longer linked with the Religious Society of Friends...
, Chairman - Callum McCarthyCallum McCarthySir Callum McCarthy is the former Chairman of the Financial Services Authority.-Biography:McCarthy attended Manchester Grammar School, then graduated from the University of Oxford...
, HM TreasuryHM TreasuryHM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
, Non-executive board member - Simon Robertson, Rolls-Royce plcRolls-Royce plcRolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
, Chairman - Luke Johnson, Royal Society of Arts, Chairman
- David Pyott, AllerganAllerganAllergan, Inc., is a global specialty pharmaceutical company. Their product ranges include ophthalmic pharmaceuticals, dermatology products, and neurological products.-Profile:...
, Chairman
Politics and public service
- Rahm EmanuelRahm EmanuelRahm Israel Emanuel is an American politician and the 55th and current Mayor of Chicago. He was formerly White House Chief of Staff to President Barack Obama...
, Member of the U.S. House of Representatives (2003–2008); White House Chief of Staff (2008–2010) - Peter Walker, Baron Walker of WorcesterPeter Walker, Baron Walker of WorcesterPeter Edward Walker, Baron Walker of Worcester, MBE, PC , was British politician. A member of the Conservative Party, he served in the Cabinet as the Environment Secretary , Trade and Industry Secretary , Agriculture Minister , Energy Secretary and Welsh Secretary...
, Member of the British Parliament (1961–1992) - Vuk JeremićVuk JeremicVuk Jeremić is a Serbian politician and the current Minister of Foreign Affairs in the Government of Serbia. He was sworn in on May 15, 2007 and reelected on July 7, 2008.-Education:Jeremić was born in Belgrade in 1975 to Miško Jeremić and Sena Buljubašić...
, Serbian Foreign Minister (2007-)