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| Deutsche Börse boss resigns over insider dealing allegations | Deutsche Börse boss resigns over insider dealing allegations |
| (3 months later) | |
| Accusations concern buying €4.5m worth of shares in the German stock exchange prior to merger talks with London Stock Exchange | |
| Jill Treanor | |
| Thu 26 Oct 2017 18.41 BST | |
| Last modified on Mon 27 Nov 2017 14.48 GMT | |
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| The chief executive of Germany’s stock exchange has resigned to avoid distractions caused by allegations that he has been involved in insider dealing. | The chief executive of Germany’s stock exchange has resigned to avoid distractions caused by allegations that he has been involved in insider dealing. |
| The Frankfurt-based Deutsche Börse announced Carsten Kengeter would leave at the end of the year just days after a German court refused to back a settlement over the allegations under which he had agreed to a €500,000 (£443,281) penalty and the Börse €10.5m. | The Frankfurt-based Deutsche Börse announced Carsten Kengeter would leave at the end of the year just days after a German court refused to back a settlement over the allegations under which he had agreed to a €500,000 (£443,281) penalty and the Börse €10.5m. |
| The allegations stem from December 2015 when he bought Deutsche Börse shares worth about €4.5m (£3.8m). Two months later, in February 2016, Deutsche Börse and the London Stock Exchange unveiled merger plans, an announcement which sent their share prices soaring. Those merger plans have since been abandoned. | The allegations stem from December 2015 when he bought Deutsche Börse shares worth about €4.5m (£3.8m). Two months later, in February 2016, Deutsche Börse and the London Stock Exchange unveiled merger plans, an announcement which sent their share prices soaring. Those merger plans have since been abandoned. |
| The Börse said the resignation of Kengeter – whose family had remained in London while he commuted for his job – was accepted with “deep regret” after a board meeting. The aim was to allow the company “to focus its energy back onto clients, business and growth and to avoid further burdens caused by the ongoing investigation”. | The Börse said the resignation of Kengeter – whose family had remained in London while he commuted for his job – was accepted with “deep regret” after a board meeting. The aim was to allow the company “to focus its energy back onto clients, business and growth and to avoid further burdens caused by the ongoing investigation”. |
| Joachim Faber, chairman of the Börse, thanked Kengeter and said he respected the decision. “We understand that the decision he took in the light of the difficult situation was in the best interest of the company. Nevertheless, the supervisory board regrets losing in Carsten Kengeter a CEO who laid the foundation for a successful future of Deutsche Börse in a significant way.” | Joachim Faber, chairman of the Börse, thanked Kengeter and said he respected the decision. “We understand that the decision he took in the light of the difficult situation was in the best interest of the company. Nevertheless, the supervisory board regrets losing in Carsten Kengeter a CEO who laid the foundation for a successful future of Deutsche Börse in a significant way.” |
| Kengeter said it was not an easy decision but said: “In the light of the public accusations and allegations, I am taking this step to protect Deutsche Börse in particular. | Kengeter said it was not an easy decision but said: “In the light of the public accusations and allegations, I am taking this step to protect Deutsche Börse in particular. |
| “I will thoroughly cooperate with the authorities until the end of the investigation. With this decision, I am paving the way for a new beginning for Deutsche Börse.” | “I will thoroughly cooperate with the authorities until the end of the investigation. With this decision, I am paving the way for a new beginning for Deutsche Börse.” |
| The Börse has previously said that the accusations against Kengeter were “without foundation”, that merger discussions with the London market between the two chairmen and chief executives did not begin until the second half of January 2016 and the shares were part of a bonus plan. It confirmed on Thursday that was still the situation. | The Börse has previously said that the accusations against Kengeter were “without foundation”, that merger discussions with the London market between the two chairmen and chief executives did not begin until the second half of January 2016 and the shares were part of a bonus plan. It confirmed on Thursday that was still the situation. |
| Kengeter was appointed chief executive of Deutsche Börse in 2014 and took up the role in June 2015. His family is based in west London. | Kengeter was appointed chief executive of Deutsche Börse in 2014 and took up the role in June 2015. His family is based in west London. |
| A German, he was educated at Middlesex University and the London School of Economics, joining Goldman Sachs in 1997 and becoming a partner before moving to the Swiss bank UBS in 2008 where he was head of investment banking before leaving in 2013. | A German, he was educated at Middlesex University and the London School of Economics, joining Goldman Sachs in 1997 and becoming a partner before moving to the Swiss bank UBS in 2008 where he was head of investment banking before leaving in 2013. |
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