Credit Suisse Set to Name David Wah, Jens Welter as Co-Heads of Banking in Promotions
Credit Suisse Set to Name David Wah, Jens Welter as Co-Heads of Banking in Promotions
(Bloomberg) -- Credit Suisse Group AG has promoted investment bankers within its senior ranks as the Swiss lender seeks to stabilize a business that saw dozens of departures last year after scandals engulfed the firm.
David Wah and Jens Welter were appointed co-heads of banking, which includes M&A, industry and country coverage, while Harold Bogle was named chairman of investment banking and capital markets, according to a company memo, which confirmed an earlier Bloomberg News report. Jens Haas and Giuseppe Monarchi were named co-heads of EMEA coverage.
David Miller remains global head of investment banking and capital markets.
A Credit Suisse representative confirmed the contents of the memo.
The appointments follow a series of changes last month that included the promotion of investment bank chief Christian Meissner to run the Americas. The bank is also reorganizing other parts of its business after its most difficult year since the financial crisis.
At a moment when investment banks are feasting on higher trading and dealmaking volumes, Credit Suisse is under mounting pressure to persuade shareholders and clients it can put its house in order and remain a vital, independent force in global banking. Under the leadership of Meissner, an ex-Bank of America Corp. executive, the investment bank did show some areas of strength away from the Archegos hit.
Revenue from the bank’s capital markets and advisory businesses rose 38% in the third quarter from a year earlier thanks to record M&A activity, a “robust” performance in equity capital markets and a rebound in leveraged finance, Credit Suisse said in November. Significantly higher M&A and ECM pipelines are expected to sustain momentum in the business, according to the bank.
Credit Suisse was the No. 7 deals adviser in 2021, working on $329 billion of transactions, according to data compiled by Bloomberg. That included Novartis AG’s agreement to sell its stake in Roche Holding AG for $20.7 billion, Veolia Environnement SA’s takeover of Suez SA worth about $15 billion and Australian biotech CSL Ltd.’s agreement to acquire Swiss drugmaker Vifor Pharma AG for almost $12 billion. It also worked on 3G Capital’s $7.1 billion deal for a majority stake in Hunter Douglas NV, the Dutch window shutters maker.
Retention payments
The Zurich-based bank is seeking to stem turmoil after blowups in its stock trading businesses cost billions in losses and an asset management scandal called into question the bank’s ability to manage risk. The Archegos Capital Management and Greensill Capital scandals prompted an exodus of talent even before plans the lender presented plans to restructure its business that were met with muted reactions from investors.
Credit Suisse has offered selective retention payments to some senior investment bankers in an effort to stem the exodus of talent. More than 50 rainmakers have defected to competitors over the last ten months, complicating the Swiss bank’s ability to compete for top dealmakers across Wall Street.
Other areas of the bank face dimmer prospects as Credit Suisse exits prime brokerage after it lost $5.5 billion on Archegos, a family office. The Swiss lender is also reviewing how it pays bankers, with Chairman Antonio Horta-Osorio saying last month that it should give senior-ranking employees more of their remuneration in shares, with long deferral periods and the ability to take back compensation that’s already been paid out.
Horta-Osorio, who has spoken frequently of improving risk management and a culture of responsibility, has seen his efforts to regain the initiative on the bank’s restructuring complicated by controversy over his breaking of quarantine rules in the pandemic.
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