Hendrik Riehmer, the chief executive of Berenberg Bank, has been removed from his post by German financial regulators.
The intervention by the supervisory authority marks a sharp escalation in the turmoil surrounding the Hamburg-based institution, which has seen record profits under Riehmer’s leadership but now faces an existential crisis regarding its corporate governance and strategic direction.
The regulator’s decision to oust the CEO comes as the bank is embroiled in a takeover battle with an Italian major.
Reports indicate that the Italian lender has reached an intermediate milestone in its bid to acquire Berenberg.
With political resistance to the deal mounting, the likelihood of the Frankfurt-based institution remaining independent is diminishing rapidly.
The removal of the top executive is widely viewed as a move to stabilize the bank’s operations and facilitate a smoother transition of ownership.