Credit Suisse Names Brian Chin CEO of Global Markets -- 2d Update
September 06 2016 - 10:06PM
Dow Jones News
By Emily Glazer
Credit Suisse Group AG said Tuesday that longtime executive
Timothy O'Hara, a top lieutenant tasked with helping Chief
Executive Officer Tidjane Thiam restructure the European bank, is
leaving the firm.
Mr. O'Hara, who late last year was appointed CEO of the bank's
global-markets business, will be succeeded by the current co-head
of credit, Brian Chin, who will also join the executive board.
The Swiss lender has been one of the worst performers among
European investment banks, struggling to cut employees and costs,
trim businesses and increase capital cushions to satisfy more
stringent bank regulations.
Under Mr. Thiam, the bank tapped investors for about $6 billion
of capital in late 2015. But it has been a rocky road, with the
firm suffering nearly $1 billion in trading losses early this
year.
The trading unit where Mr. O'Hara has long worked has been at
the center of Mr. Thiam's efforts to restructure the firm. A
spokeswoman for the bank declined to comment on the next step for
Mr. O'Hara, who joined the bank in 1986.
New York-based Mr. O'Hara was promoted to oversee the bank's
global-markets unit, which trades stocks and bonds and sells
research to hedge funds, pension funds and other clients, as part
of Credit Suisse's sweeping reorganization in October 2015.
But in the transition to replace Gael de Boissard, who
previously led that division, there were questions over the chain
of command within the markets business.
According to an April Wall Street Journal article, executives
disagreed over who was responsible for the losses as they mounted
in late 2015. Mr. de Boissard told the Journal through his lawyer
that he "ceased to perform global head of fixed income duties of
any kind with effect from the restructuring announcement" Oct. 21
and "ceased to have any reporting line to or from him."
The questions about losses, which came up later, focused on
positions that included loans to companies at various stages of
restructuring in the energy, utilities and housing industries, and
securities backed by junk bonds.
Mr. Thiam said in a statement late Tuesday that Mr. O'Hara has
"contributed enormously to the development of our Global Markets
franchise, establishing market leading positions in many of our
core products and services which he managed. I am especially
thankful to Tim for steering Global Markets through its recent
accelerated restructuring program" and returning the division to
profitability in the second quarter.
As part of the management moves, the bank also announced that
Eric Varvel has been appointed president and CEO of Credit Suisse
Holdings Inc., in addition to his current role as global head of
asset management. Mr. Varvel has been working at the firm for 25
years.
--Jenny Strasburg and Maria Armental contributed to this
article.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
September 06, 2016 21:51 ET (01:51 GMT)
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