Finance

Credit Suisse’s CEO vows to rebuild M&A and capital markets teams after an exodus of nearly 70 senior staff

  • Bankers, traders, and other employees are departing Credit Suisse in droves in recent months.
  • Credit Suisse has been rocked this year by the implosions of Greensill and Archegos.
  • The bank reported Q2 earnings on July 29 and released a report about the Archegos scandal.
  • See more stories on Insider’s business page.

Nearly 70 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 and has most recently 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.

The firm this year also froze $10 billion of supply-chain finance funds linked to Greensill Capital over valuation concerns, and it also dealt with a spying scandal in 2019 that led to the resignation of its CEO, as well as a string of accounting scandals.

Together, these 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.

Credit Suisse on July 29 released a report of the independent investigation into Archegos completed by the elite law firm Paul Weiss. The report found that while Credit Suisse employees did not act fraudulently or with ill intent, the bank failed to effectively manage risk in the investment bank’s prime services business.

As a result of the investigation, Credit Suisse said it had taken multiple steps to mitigate risk, including leadership changes in the investment bank and prime services business — including the departures of investment-bank chief Brian Chin; chief risk officer Laura Werner; and prime brokerage co-heads John Dabbs and Ryan Nelson — as well as reviewing and upgrading risk-governance bodies, implementing a reduced risk appetite across the organization, and adding new approval requirements for all material transactions.

In its second-quarter earnings results on July 29, Credit Suisse reported an overall net revenue decrease of 18% compared to the second quarter of 2021, and investment bank net revenue was down 41% compared to that time period last year.

During the earnings call, analysts questioned firm leadership about the many departures at Credit Suisse in recent months and plans to rebuild.

“We are fully focused on investing in the investment bank and within that in capital markets and advisory, where we have seen indeed a higher attrition level, especially on a senior level,” said CEO Thomas Gottstein, adding exits have hit senior levels especially hard. Regarding comp, he said that the firm is currently “not the high payer of the Street.”

Since early April, at least 68 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 the year after bonuses have hit employees’ bank accounts.

There have been moves in the other direction, too. Credit Suisse on July 26 announced that it hired a new chief risk officer: David Wildermuth, who had been Goldman Sach’s deputy chief risk officer. Dave Stolzar rejoined the firm as Americas head of specialty finance, Insider reported July 15, soon after Kyle Heroman joined from Piper Sandler’s US FIG M&A team, the Wall Street Journal first reported.

Other recent hires have included Joanne Hannaford from Goldman Sachs as chief technology officer, per the Wall Street Journal, as well as Markus Ruetimann as global chief operating officer for Credit Suisse Asset Management. Reuters first reported the news.

In June, the firm hired one of HSBC’s top credit-trading execs as well as Rodrigo Fittipaldi, formerly a managing director and head of FIG for Latin America at BNP Paribas, to be a managing director to lead debt capital markets for Brazil.

Credit Suisse declined to comment to Insider for this story.

This story was last updated August 18 to add information about an investor-related departure.

Are we missing anyone? Let the reporter via email (sstokes@insider.com) or on Signal (646-389-7866).

Leadership, compliance, operations

  • Floriana Scarlato, who was head of compliance for Swiss Universal Bank, a member of SUB’s management committee, and a Credit Suisse executive board member, is stepping down from her roles, Credit Suisse announced July 12. A Credit Suisse spokesperson said her departure was not related to Greensiill or Archegos.
  • Brian Chin, who was the investment-bank chief, and Laura Werner, chief risk officer, stepped down in the immediate wake of the Archegos scandal, Bloomberg reported April 5. The leadership shakeup also saw the departures of Paul Galietto, head of equities sales and trading; Parshu Shah, head of prime services risk; Ryan Atkinson, head of credit risk; Ilana Ash, head of counterparty credit risk management for IB; and Manish Mehta, head of counterparty hedge fund risk.
  • Marla Moskowitz-Hesse, a former managing director of governance, reporting, and strategic implementation for global markets compliance, joined Wells Fargo as head of compliance program strategy, planning, and governance on April 28, Wells Fargo confirmed to Insider. In her new role, she will lead the team overseeing “Compliance program strategy and execution, compliance regulatory deliverables, as well as centralized management of compliance staffing, financials and COO support,” a Wells Fargo spokesperson said.
  • Jose Olympio Pereira, CEO of Credit Suisse Brazil, is leaving the bank at the end of 2021 after more than 17 years, Bloomberg reported May 26.
  • Falguni Desai, Credit Suisse’s former equities IT head of strategy, has joined Microsoft as a digital strategy advisor, efinancialcareers reported June 4 and according to her LinkedIn page.

Investment banking, capital markets

  • Head of financial sponsors M&A Dhiren Shah, who focused on the tech sector during his six years at Credit Suisse, is joining Citigroup to be the chairman of global technology M&A in New York, Reuters reported August 17.
  • Inessa Even, who previously led strategic investments in financial technology for the investment bank, is joining Wells Fargo Strategic Capital principal technology investing (PTI) group as a director, Insider reporter August 10. In her new role, Even will help oversee capital markets and wealth management tech investments.
  • Investment banker Homan Milani has resigned from the bank to join Bank of America, Yahoo Finance reported July 21. Milani was based in San Francisco and was head of West Coast internet investment banking.
  • RBC Capital Markets hired away a trio of technology bankers to join the firm in San Franscisco, RBC confirmed to Bloomberg July 13. The hires include Kirk Kaludis, who will be global head of technology investment banking; Owen Bittinger, who will be co-head of global software; and Federico Acabbi, who will join as a director focused on software.
  • Jefferies hired away director Samie Zare and vice president Rinki Melwani, Financial News reported July 7. The moves mean that Jefferies has hired away six bankers from Credit Suisse in recent months, including former EMEA FIG head Armando Rubio-Alvarez and a handful of directors and managing directors who defected in late May and early June.
  • The Wall Street Journal reported July 6 that co-head of media and telecom team Eric Federman is joining Barclays; co-head of global industrial team Spyros Svoronos is joining Lazard; head of global energy Brian McCabe is joining JPMorgan; and Brad David is joining Evercore.
  • Matt Walsh, who joined Credit Suisse in 2017 and was most recently co-head of technology ECM, is moving to SVB Leerink, Bloomberg Law reported July 2 and a source familiar with the matter confirmed to Insider. Walsh will be the head of equity capital markets for investment banking, Bloomberg said.
  • Gobal head of mergers and acquisitions Greg Weinberger is moving over to Morgan Stanley, the Wall Street Journal reported June 16. Morgan Stanley declined to comment on the news to Insider, but Credit Suisse that same day confirmed to Reuters that it named Cathal Deasy and Steven Geller to be the new global co-heads for M&A. Deasy was previously head of dealmaking for EMEA, while Geller led Americas M&A and was global M&A leader in the bank’s technology unit. David Wah, the bank’s client advisory group leader, will also be the global head of advisory, Credit Suisse confirmed to Retuers.
  • Matt DeFusco, a managing director in Credit Suisse’s leveraged-finance division who joined the firm from Goldman Sachs in 2017, has departed for alternative asset manager Blue Owl, efinancialcareers reported June 14 and a source familiar with the matter confirmed to Insider.
  • Andrew Conway and Charles Hadid have departed for Bank of America and Morgan Stanley, respectively, Bloomberg reported June 9. Conway was previously a strategic and financial advisor to global consumer product companies at Credit Suisse, while Hadid was a managing director in the bank’s global consumer group focusing on the food and beverage sector. It is unclear what their new roles at their new banks will be. A Bank of America spokesperson confirmed Conway’s hire to Insider.
  • Bruno Angles, a former senior managing director in Paris who oversaw the bank’s franchises in France and Belgium, jumped to insurer AG2R La Mondiale, Reuters reported June 1 and according to his LinkedIn page.
  • BlackRock hired Jackie Krese to be a managing director and head of US capital markets, a new position, Pensions & Investments reported May 25. A BlackRock spokesperson confirmed the hire to Pensions & Investments. Krese was previously Credit Suisse’s group head of Americas debt capital markets solutions.
  • Stephane Gruffat, Credit Suisse’s head of the equity capital markets syndicate, is joining Deutsche Bank to co-lead the bank’s equity capital markets unit for EMEA, Reuters reported May 20. Credit Suisse confirmed Gruffat’s departure to Reuters.
  • Stephanie Ruiz, a former managing director in Credit Suisse’s global industrial investment-banking group, has departed the firm for “other opportunities,” Bloomberg reported May 18. According to her LinkedIn page, she joined JPMorgan as a managing director for tech investment banking in June.
  • Karl Rozman, a former managing director in Sydney, will be the new leader of Australian natural resources sector coverage at Bank of America, Bloomberg reported May 18. A Bank of America spokesperson confirmed Rozman’s hire.
  • Simon Auerbach, who was a managing director focused on business and information services, is leaving the firm for Lazard, Bloomberg reported May 18. Lazard did not respond to a request for comment from Insider.
  • Leo Reif, the former head of EMEA healthcare and a former managing director in the global healthcare and UK and South Africa groups, is moving to Jefferies, the Wall Street Journal reported May 17. Jefferies did not respond to a request for comment from Insider.
  • Chris Eby, a managing director and the head of asset and wealth management for investment banking in the Americas, is moving to Goldman Sachs, the Wall Street Journal reported May 17 and a source familiar with the matter confirmed to Insider.
  • Nick Daly, a managing director in the financial institutions group, is moving to Bank of America, the Wall Street Journal reported May 17. A Bank of America spokesperson confirmed Daly’s hire.
  • Jason Wortendyke, the former global co-head for mobility and services investment banking and co-head of the Chicago office, is moving to Citigroup to be the global co-head of diversified industrials and co-head the Chicago office, the Wall Street Journal reported May 17. A Citigroup spokesperson confirmed Wortendyke’s hire to Bloomberg May 18.
  • Several Credit Suisse bankers are heading to Barclays, the Wall Street Journal reported May 17 and a source familiar with the matter confirmed to Insider. Hires include former head of media and telecommunications M&A Ihsan Essaid, who will co-head Americas M&A; and Tim Devine, who will head FIG M&A.
  • In addition to Essaid and Devine, David MacGown, a previous managing director in Credit Suisse’s financial institutions investment banking group; and Kamal Ahmed, a former managing director in tech investment banking, will also join Barclays. The Wall Street Journal reported Ahmed’s move on May 17 and a source familiar with the matter confirmed to Insider. Barclays announced MacGown’s hire on May 12.
  • A group of Credit Suisse bankers defected to Jefferies in late May and early June, according to reporting in Reuters and finews. Armando Rubio-Alvarez, former head of Credit Suisse’s EMEA FIG team, will take on Jefferies’ European responsibilities when he joins the firm this summer, Reuters said. Former directors Henry Kong and Fitzgerald Woolcott, former managing director Carlos Marque, and Alejandro Przygoda, Credit Suisse’s former global FIG head, are also joining Jefferies, finews said. Kong, Woolcott, Marque, and Przygoda’s new roles at the firm are unclear.
  • Christian Bradeen, an industrials banker, is moving to Perella Weinberg Partners, according to a May 12 press release from Perella. He’ll join as partner June 30.
  • M&A banker Kierin Deeming is joining JPMorgan to lead M&A advisory for Australia and New Zealand, Financial Review reported May 7. JPMorgan did not respond to a request for comment from Insider.

Trading, prime brokerage

Research

  • Guggenheim Securities hired Seth Sigman to be a managing director and research analyst covering the consumer internet sector, it announced July 29th. Sigman was previously covered the broadlines and hard retail sector at Credit Suisse, and in his new role will focus on e-commerce retailers and other digital-first consumer product and service companies.
  • Evan Seigerman, a former director and senior analyst focused on large-cap biotechnology equity research, departed to BMO Capital Markets to be a managing director covering the biotech and pharmaceutical industries, BMO announced June 22. BMO also hired Trung Huynh, formerly based in Credit Suisse’s London outpost, to its healthcare research team.

Asset management

  • Houlihan Lokey hired Sameer Shamsi to be a managing director and the head of secondaries in the private fund group, the firm announced May 26. Previously, Shamsi led Credit Suisse’s secondary advisory activities in the Americas and was a member of the private funds group’s capital solutions team.
  • Christoph Schumacher, who was previously the global head of real estate and a managing director at Credit Suisse Asset Management, has joined Manulife Investment Management to be the global head of real assets and private markets, the firm announced May 17.

Private banking

  • Singapore-based Elaine Zhang, who had been at Credit Suisse for 10 years, will join JPMorgan to lead its China private banking business, Bloomberg reported May 18, citing a JPMorgan statement.
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