Deutsche Bank Taps Morgan Stanley Exec As CEO of U.S. Investment

Signaling a heightened interest in capital markets and securities activities, Deutsche Bank has named W. Carter McClelland president and chief executive of its U.S. investment banking subsidiary, Deutsche Morgan Grenfell/C.J Lawrence Inc.

Mr. McClelland comes to Deutsche Bank after 22 years at the Morgan Stanley Group, most recently as chief administrative officer. He will start at Deutsche Bank on Sept. 6, replacing James Moltz, who headed C.J. Lawrence for 25 years.

In an interview Friday, Mr. McClelland said he will seek to turn Deutsche Bank into a "significant financial services organization" moving into the so-called bulge bracket, or large securities underwriting business. "We'll be (aiming at) the lower end of the bulge bracket," Mr. McClelland said. "That may be a reasonably tall order, but I think it's achievable."

He ruled out any acquisitions, though, saying the bank would opt instead to expand "organically."

Alongside several other big European banks, Deutsche Bank has been bolstering its worldwide investment banking operations. In the United States, the bank relinquished its grandfathered investment banking rights and transfered those operations to a section 20 securities underwriting company.

The bank subsequently reorganized its worldwide capital markets operations, including the bank's U.S. brokerage unit, C.J. Lawrence, under management from London, and has since gone on a hiring binge, both here and in London, offering high salaries to well-known financial specialists.

"They clearly can't pretend to be a global player without having a significant presence in New York," said Bryan Crossley, an international bank analyst with ABN-Amro Hoare Govett in London.