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. Last Updated: 07/27/2016

Ex-Lehman Banker Named VTB's New CFO

Herbert Moos, who spent 14 years at Lehman Brothers, will replace Nikolai Tsekhomsky as chief financial officer at VTB, Russia's second-biggest lender, banking sources told Reuters on Tuesday.

Shares in VTB rose 2 percent in early trading after the news, slightly outperforming the broad market index, which gained less than 1 percent.

Domestic media speculated that an internal conflict was behind Tsekhomsky's departure.

Kommersant quoted sources in VTB as saying top management had criticized Tsekhomsky for inaccuracies in financial reports and a 70 percent fall in the bank's share price following the initial public offering in May 2007.

"Moos is stepping in, it is a positive news for the bank, but we are a little bit puzzled by speculations in the media that VTB's internal conflict was the reason for Tsekhomsky's resignation," Olga Veselova, an analyst at Troika Dialog said.

"Tsekhomsky was not axed, he maintains a friendly relationship with the VTB team," a source close to Tsekhomsky told Reuters.

Moos joined VTB in 2008 as CEO of VTB Bank Europe, part of the investment banking business of VTB Group, leaving his posts at Lehman Brothers as chief financial officer, Asia-Pacific ex-Japan and treasurer for Asia-Pacific.

VTB declined to comment on the management change.

State-controlled VTB is struggling with losses as a rise in bad loans consumes its profit and capital. The government recently pumped 180 billion rubles ($5.70 billion) of fresh capital into the bank.