Germany's Federal Financial Supervisory Authority (BaFin) has taken the unprecedented step of suspending the entire three-member executive board of Berenberg Bank, one of Europe's oldest private banks, effective immediately. The executives affected are Hendrik Riehmer, David Mortlock, and Christian Kühn. This drastic action stems from indications of possible corporate governance breaches that emerged during the annual audit for the 2025 financial year. The bank's statement highlighted issues with "certain market transactions of unclear provenance, the investigation of which was hampered by a lack of transparency." This move by BaFin is considered a rare and drastic intervention in Germany's financial sector.
Following the suspension, BaFin appointed two special commissioners to take over the executive management responsibilities at Berenberg. Dr. Hans-Walter Peters, a former CEO and Chairman of the Advisory Board at Berenberg, and Michael Horf, a former board member of Degussa Bank, have assumed these roles. Dr. Peters will oversee Markets and Client Affairs, while Horf will be responsible for Risk and Operations. They will be supported by the extended management team, including Laura Janssens (Head of Investment Bank) and Frederik Gottlob (Head of Corporate, Wealth and Asset Management). Berenberg, founded in 1590, manages approximately $44.7 billion in assets under management and offers wealth and asset management, investment banking, and corporate banking services.
The bank expects to report a positive result of approximately €20 million for the financial year 2025 and an impressive €40 million for the first half of 2026. While daily operations and business strategy remain unaffected, this leadership change could present significant operational risks for institutional clients. Analysts suggest that such a wholesale change could disrupt client relationships, trigger counterparty review clauses in institutional mandates, and potentially lead to asset managers redirecting capital market activity to competitors like Deutsche Bank or Commerzbank. The ongoing investigation by BaFin will determine if further sanctions, such as capital surcharges or license restrictions, will be imposed on Berenberg. This incident also signals a potential increase in compliance expectations for other private banking institutions in Germany.
