Credit Suisse Credit Head McCarthy, Banking's Welter Exit Firm

In Business
2022-09-28 07:36:19Z
By Bloomberg

(Bloomberg) -- Credit Suisse Group AG's global head of credit products, Danny McCarthy, and co-head of global banking, Jens Welter, are departing the firm ahead of a planned restructuring that will attempt to restore the bank to profitability and curb risk.

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After a 27-year career at the Swiss company, Welter will become the new co-head of European investment banking at Citigroup Inc., alongside Ignacio Gutierrez-Orrantia, according to a memo from the New York-based bank Tuesday. McCarthy has left Zurich-based Credit Suisse to pursue other opportunities, according to a memo seen by Bloomberg.

"Jens is an exceptional banker, a great leader and has deep client relationships," Chuck Adams, Citigroup's global head of health-care, consumer and retail investment banking, said in an interview. "A lot of his experience has come from doing consumer-facing transactions, which is entirely in line with what we're trying to accomplish as it relates to the convergence across the health-care and consumer sectors."

Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as new Chief Executive Officer Ulrich Koerner seeks to return the lender to profitability and put an end to a string of scandals. The company also has floated the idea of giving dealmakers an equity stake in their unit, auguring a possible spinout, Bloomberg has reported, and has considered reviving the First Boston branding.

Credit Suisse shares fell in early Zurich trading, down more than 5% to 3.75 Swiss francs as of 9:35 a.m.

David Wah was appointed sole global head of banking, effective immediately, according to a memo to staff from David Miller, global head of investment banking and capital markets. Wah will continue to be based in New York and lead the bank's client advisory group. He's been a part of the bank's technology franchise since 1996, advising on mergers and acquisitions, initial public offerings and leveraged buyouts, according to the memo.

Credit Suisse also named Cathal Deasy and Giuseppe Monarchi co-heads of investment-banking capital markets in Europe, the Middle East, and Africa, in addition to their existing responsibilities, according to an internal memo seen by Bloomberg. They will both continue to be based in London, reporting to Wah, with Deasy remaining global co-head of M&A and Monarchi staying co-head of EMEA coverage.

Joel S. Kent is set to replace McCarthy, according to a separate memo.

"We will work together with Danny to ensure a seamless transition of his duties," Miller and Jay Kim, global head of investment-banking credit, wrote in a memo.

Credit Suisse confirmed the contents of the memos.

(Updates with shares in fifth paragraph)