Deutsche sues JP Morgan Chase over credit team defections

Deutsche Bank has filed a lawsuit against JP Morgan Chase and two of the German bank's former employees following the defection of senior Deutsche Bank staff to the US bank more than a month ago.

JP Morgan Chase poached Brian Zeitlin and four colleagues – Yale Baron, James Kane, Steven Weinreich and James Millard – from the German bank in August. This happened just four months after Zeitlin’s appointment to manage Deutsche Bank’s collateralised debt obligation (CDO) and credit hybrid group in April.

Deutsche Bank alleges that Zeitlin "has threatened" to start work heading JP Morgan Chase’s CDO business this month, just two months after his resignation from Deutsche Bank. This would violate his contractual 90-day notice period which expires on November 18, Deutsche Bank claims.Deutsche Bank also alleges Zeitlin induced his colleagues to follow him to JP Morgan Chase “in violation of his fiduciary duty and contractual obligation [and] in collusion with JP Morgan Chase”, according a temporary restraining order filed by Deutsche Bank at the Southern District of New York, a federal court in Manhattan.

Deutsche Bank is also seeking an injunction against Baron, which the bank alleges has stolen “confidential and proprietary computer data relating to [Deutsche’s] clients, suppliers and strategic business plans".

JP Morgan Chase declined to comment on the case. Zeitlin and Baron were not immediately available for comment.