UBS Group AG will keep 12 Credit Suisse bankers to lead its banking operations in America. The move aims to leverage the former rival’s US presence to expand UBS.
UBS intends to capitalize on its rival’s resources to enhance its reach in the Americas. The retained bankers will play a key role in UBS’s efforts to grow its business.
The Swiss bank has kept certain staff for its Americas leadership, like Emre Gunalp, head of global industries. Jason English, co-head of healthcare, and Diron Jebejian continue their roles as America’s co-head of financial sponsors. A memo to staff outlines the retention of these key individuals. The retained staff members are part of the bank’s efforts to strengthen its global banking presence in the Americas.
A revamp of UBS’s investment banking unit was unveiled on Monday, involving the appointment of M&A leaders. Out of the group of over 40 senior executives unveiled by UBS to oversee America’s operations, 12 originated from Credit Suisse.
This action represents a significant move in integrating Credit Suisse into UBS’s operations. UBS CEO Sergio Ermotti is capitalizing on the post-rescue acquisition of Credit Suisse in March. The aim is strategically restructuring UBS’s investment bank, enhancing its competition against Wall Street firms.
Global Revamps
The investment bank changes lead to David Kostel of Credit Suisse becoming global co-head of coverage. Due to the overhaul, Tom Churton, also from Credit Suisse, assumes the global chief of staff role.
Christian Lesueur, previously UBS’s global TMT Investment Banking head, is now the global co-head of coverage. He will oversee technology, media, and telecoms, divided into two groups within UBS’s restructuring. Nestor Paz-Galindo and Marc-Anthony Hourihan will jointly lead M&A as global co-heads in the combined organization.
UBS’s adjustments lead to the departure of Michael Santini, former executive chair of global banking.
Revamps in America
Vik Hebatpuria becomes the financial institutions’ group leader in the Americas, while Emre Gunalp heads global industries.
Healthcare co-heads are Seth Damergy and Jason English, while Max Justicz and Diron Jebejian lead financial sponsors. Terry Sullivan is appointed global head of the financial institutions’ group among global group heads based in the Americas.
David Kostel takes on the role of global head of health care in the newly appointed leaders. Globally, consumer and retail are led by John Levin, and Neil Meyer has become TMT’s global co-head.
Solon Kentas and Jeff Hinton will head mergers and acquisitions in the Americas for UBS. Brad Miller takes on the role of equity capital markets head in the region. Michele Cousins leads leveraged capital markets, while Anthony DeRosa and Yuriy Oren co-head leveraged finance. A separate memo outlines key personnel appointments for UBS’s operations in the Americas.
Credit Suisse Acquisition
Notably, UBS’s acquisition of Credit Suisse leads to a stronger US presence, enhancing competition against Wall Street rivals. With this strategic move, UBS aims to expand beyond traditional markets, capitalizing on Credit Suisse’s historical US presence.
Credit Suisse gained substantial Wall Street influence by acquiring First Boston three decades ago. The name Credit Suisse First Boston was used for the investment bank division until 2005 when it was retired.
Credit Suisse initiated extensive changes due to scandals, intending to revive the First Boston brand by restructuring its investment bank. Those plans fell apart as UBS displayed limited enthusiasm for pursuing the proposed agreement.
Credit Suisse’s restructuring ambitions faltered after UBS exhibited disinterest in the deal’s pursuit.
Employment cuts
According to a June Reuters report, UBS might reduce its expanded workforce by approximately 30% post-rescue.
Credit Suisse’s investment bank, back office, and Swiss retail bank may face the most significant impact. Many Credit Suisse bankers have already departed to other institutions, while UBS is laying off global investment bank employees. Reuters reports that around 80% of Hong Kong-based Credit Suisse investment banking staff will be let go.
Credit Suisse’s largest group of investment bankers in Asia is situated in Hong Kong. UBS’s recent changes feature Marc Warm as global co-head of leveraged and debt capital markets. Marc Warm will join David Slade as the global co-head of leveraged and debt capital markets. Among UBS’s announced changes, Scott Lindsay and Robin Rankin are appointed global M&A chairmen.
As reported by Reuters, cuts are scheduled to begin this week, citing sources familiar with the situation. Reuters stated that UBS is poised to trim its workforce by about 30% following a state-brokered rescue. Credit Suisse’s investment bank in Hong Kong is expected to see an 80% reduction in staff.