Summary List Placement
Nearly 50 senior employees have parted ways with Credit Suisse during recent months, according to hiring announcements by other banks, a review of reported exits, and people familiar with the moves.
The Swiss bank has been embroiled in a string of problems over the last two years, starting with a 2019 spying scandal involving its then-chief operating officer keeping tabs on rival UBS, which was followed by the resignation of its CEO four months later. Credit Suisse has also taken hits when accounting scandals rocked then-clients Luckin Coffee and Wirecard, and when it took a $450 million writedown on its stake in hedge fund York Capital.
The bank in February froze $10 billion of supply-chain finance funds linked to Greensill Capital over valuation concerns. The ordeal led the bank to reactivate a special crisis committee to oversee issues involving the now-insolvent lender, Bloomberg reported.
And lately, Credit Suisse has been dealing with the fallout from the implosion of Archegos Capital Management, a family-office client founded by hedge-fund billionaire Bill Hwang that had $8 billion in assets decimated when massive, concentrated bets held in swaps positions moved against it.
Together, the setbacks have cost the firm billions of dollars in losses and have also been accompanied by an exodus of senior bankers and other workers at Credit Suisse. Immediately after the Archegos scandal, top leaders like investment-bank chief Brian Chin and chief risk officer Laura Werner stepped down, along with prime brokerage co-heads John Dabbs and Ryan Nelson.
Managing directors on a March call with CEO Thomas Gottstein and the now-departed Chin questioned the executives about the Archegos mess, which blew a multibillion-dollar hole in the bank’s balance sheet, in tones that ranged from pointed to aggressive, Insider previously reported. How could this have happened? Why was the bank so concentrated in one client? Why wasn’t it hedged? Who knew what, and when did they know it?
Someone on the March call asked Gottstein and Chin how the Archegos ordeal would affect their bonuses, an already-sore spot at the firm after Credit Suisse rewrote the structure for cash payouts in investment banking and capital markets last year. The executives responded to the question with a nonanswer — calling for solidarity across business lines — that eroded their credibility, a person on the call previously told Insider.
Since early April, at least 44 names have emerged of senior personnel who have recently parted ways with or are set to depart Credit Suisse. Many have headed to rival banks including JPMorgan, Jefferies, Bank of America, Citigroup, and Barclays.
The roles represent a wide range of divisions at the bank and did not all have direct ties to the Archegos stumble and related fallout. Recruiting for and transitioning to new jobs can also take months, so the dates that moves were reported or announced do not necessarily indicate when a decision to leave was made. And to be sure, there’s always movement between firms, particularly early in …read more
Source:: Business Insider