The chief of Deutsche Bank's U.S. loan syndications team said his new employer wants to preserve the credit culture of the former Bankers Trust Corp.

In an interview late last week, Kevin Sullivan, managing director and head of syndicated lending, said credit decisions will continue to be made by the former Bankers Trust credit committee.

The decision to go with the Yankee approach suggests that lending is one area where conservative Deutsche Bank is yielding to the practices of its new U.S. acquisition.

Bankers Trust was a major power in the leveraged lending business, which carries more risk than Deutsche Bank's traditional investment-grade lending operation.

Mr. Sullivan said the combined bank will stay involved in both kinds of lending. "The investment-grade business will continue to be looked at," he said. "We're not shifting away from any clients."

Bankers Trust ranked third in managing leveraged loans in the first half, with a market share of 8.1%. It syndicated 15 deals worth $7.15 billion, according to Thomson Financial Securities Data.

Because Deutsche Bank expects to maintain Bankers Trust's edge in leveraged loans, competitors are likely to be disappointed that BT's New York presence did not just disappear once the merger was completed June 4.

Leveraged loans-those priced 125 basis points or more over the London interbank offered rate-are the most sought after, and can be highly profitable.

Deutsche Bank's loan syndications team moved to Deutsche Bank's U.S. headquarters in midtown Manhattan two weeks ago, away from their longtime offices near Wall Street.

Deutsche Bank is also planning to combine the Bankers Trust loan team with its own group in a single location in London, Mr. Sullivan said.

Meanwhile, there seems to be little shake-up among executives on the team. Mr. Sullivan is still head of the U.S. business, though he now reports to two new bankers: Thomas Gahan, global head of credit products, and Grant Kvalheim, global head of debt capital markets.

In addition, Mr. Sullivan reports to Ted Virtue, head of investment banking for the Americas.

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