Credit Suisse Lures Back Prime Broker Head to Clean Up Archegos
(Bloomberg) -- Three years after he left in a leadership shakeup, former Credit Suisse Group AG prime broker head Indrajit Bardhan is returning to clean up his old unit in the wake of its multibillion-dollar losses from botched dealings with Archegos Capital Management.
The Swiss bank hired Bardhan as a consultant, according to people with knowledge of the arrangement, who asked not to be identified because the matter is private. He was among a number of high-profile executives to exit in 2018. He relinquished his role as global head of prime services to Paul Galietto, who later rose to head of equities and then left last month after the bank posted $5.5 billion in losses tied to Archegos.
The unusual decision to enlist a veteran underscores the challenge the Zurich-based bank faces in rebuilding the potentially lucrative but risky business of catering to hedge funds and other sophisticated investors. It pared a number of experienced staffers years ago. And more recently the firm saw another raft of senior departures after the Archegos debacle, including the co-heads of the prime brokerage unit.
A message to Bardhan was returned by a spokesperson for the bank who had no comment on his behalf.
Credit Suisse emerged as the biggest loser among global investment banks as Archegos imploded in March. The debacle wiped out a year of profit, adding to a string of hits and writedowns and leaving shareholders questioning the bank’s controls.
Among the company’s other steps to overhaul leadership, it named Neil Hosie head of equities for Europe, the Middle East and Africa, replacing Ryan Nelson, people familiar with the decision said earlier Friday. Hosie will relocate to London, the people said.
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