Merrill Lynch has bolstered its German business with the appointment of Lothar Spaeth, a former politician, as a vice-chairman, almost a year after the bank lost its German investment banking heads.

Spaeth will become vice-chairman of Merrill Lynch Europe, working closely with the German investment banking team. Malcolm Thwaites and Ernst Fassbender quit as Merrill's co-heads of German investment banking last July to take on the equivalent roles at Lazard, so Spaeth's appointment will help reinforce Merrill's commitment to the German market.