German neobankN26 is bringing in former Bundesbank executive Andreas Dombret to chair itssupervisory board, capping months of turmoil between investors and thecompany's founding team.The leadershipoverhaul represents the latest attempt to stabilize Germany's mostvaluable fintech after regulatory troubles and internal disputes threatened toderail the digital bank's growth trajectory.German Fintech N26 GetsNew Boss Amid Regulatory StormDombret,who served on the Bundesbank's executive board from 2010 to 2018, will benominated by both founders and investors at an upcoming extraordinary generalmeeting. His banking supervision background could help N26 navigate ongoingregulatory scrutiny from German watchdog BaFin.Theappointment comes alongside other significant changes. Current supervisoryboard chair Marcus Mosen will become co-CEO, working alongside remainingfounder Maximilian Tayenthal. Co-founder Valentin Stalf stepped down from hisCEO role last week and will join the supervisory board after a cooling-offperiod."MarcusMosen has known the company since its founding and has the full trust of theinvestors," said Colin Bryant of Coatue, one of N26's backers, quoted by Financial Times. "Weare confident that as CEO he will be integral in helping to position N26 forlong-term growth and lasting success."Banking Veteran BringsDeep ExperienceDombretbrings decades of financial services expertise spanningboth private sector and regulatory roles. His career includessenior positions at major Wall Street firms, including a decadeas managing director at J.P. Morgan and partnerships at Rothschild& Co.Beforejoining the Bundesbank, he served as Vice Chairman Europe at Bank ofAmerica from 2006 to 2009, navigating the financial crisis period. Hisregulatory experience extends beyond Germany, he was afounding member of the European Central Bank's Supervisory Board andserved on the Board of Directors at the Bank for InternationalSettlements.Sinceleaving the Bundesbank in 2018, Dombret has maintained an active advisoryportfolio. He currently serves as Global Senior Advisor atOliver Wyman and holds advisory roles at major financial institutionsincluding Banco Santander and Sumitomo Mitsui Banking Corporation.Histechnology sector experience includes serving as Global Policy Advisorfor Financial Services at Amazon Web Services since 2020. Thisfintech exposure could prove valuable as N26 works to balance innovation withregulatory compliance.You may also like: N26 Names New Chief Regulatory Officer amid Jan Stechele's DepartureRegulatory Pressures MountThereshuffle follows fresh regulatory concerns from BaFin, which recentlyflagged new issues and threatened additional sanctions. The regulator hadpreviously imposed a customer cap and special monitor over weak moneylaundering controls and risk management problems.A recentBaFin audit found "weaknesses in the internal control systems, processesand overall organization," according to N26's annual report. The watchdogplans to issue formal warnings to two management board members and installanother special monitor.Theselatest troubles compound N26's regulatory headaches. BaFin only lifted acustomer onboarding cap last year that had severely limited growth since 2021.The restriction, originally set at 50,000 new customers monthly, came with a€9.2 million fine for lax anti-money laundering controls.Investor-Founder TensionsBoil OverBehind thescenes, months of friction between N26's investors and its foundingteam had reached a breaking point. Stalf and Tayenthal together own about 20%of the company's equity and had retained special veto rights over majordecisions.Investorspushed to remove these founder privileges, particularly after the latestregulatory troubles. The founders have been negotiating to give up their vetopowers in exchange for reducing the guaranteed returns promised to investors inN26's 2021 fundraising round.Thatfunding valued N26 at €7.7 billion and guaranteed new investors a 25% annualreturn. Under the deal being discussed, these guaranteed returns would be cutas part of the compromise.Tayenthalis also expected to step down from his management role by year-end, accordingto people familiar with the negotiations.New Leadership Takes ShapeDombretcould assume his new position as early as October, pending routine BaFinapproval. His extensive experience overseeing banking supervision and financialstability at the Bundesbank makes regulatory approval likely.The timingreflects urgency around resolving the company's governance issues. Invitationsfor the extraordinary general meeting to formalize Dombret's nomination areexpected next week.Founded in2013 as an online-only bank, N26 has struggled to balance rapid growth withregulatory compliance. The company's attempts to expand internationally whilemaintaining German regulatory approval have created ongoing tensions.This article was written by Damian Chmiel at www.financemagnates.com.