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Credit Suisse’s largest distributor in the United States has ceased to be the last senior employee to disappear from the Swiss bank, which is struggling to retain the best talent after a series of scandals that have shattered employee morale.
Greg Weinberger, who has led the mergers and acquisitions business at Credit Suisse since 2019, will join Morgan Stanley later this year, according to people with direct knowledge of the matter. I had been working in the bank for over 25 years.
Credit Suisse and Morgan Stanley declined to comment on the measure, which was first published by the Wall Street Journal.
Weinberger’s move, acting as an advisor to several U.S. corporations, including Chevron, follows a wave of outflows across the bank following the back-to-back crises involving Archegos Capital and Greensill Capital.
Earlier this year, the main brokerage unit providing hedging services lost at least $ 5.5 billion from the explosion at Bill Hwang’s family office, Archegos. Bankers who were not involved in the affair were furious because of Credit Suisse otherwise I would have reported it is its best quarter for at least a decade, driven by capital markets and business advice.
The business loss came after the closure of $ 10 billion in funding funds from the Credit Suisse supply chain linked to insolvent financing group Greensill Capital. It could cost bank customers up to $ 3 billion and regulators around the world are investigating.
As a result, Credit Suisse’s head of investment banking, Brian Chin, left the bank alongside risk and compliance manager Lara Warner. The leaders of the main brokerage unit were also dismissed.
The new president António Horta-Osório has promised to reduce the size of the investment bank, review the culture and curb risk-taking. The prospect of further cuts and a change in strategy caused many employees to start looking for work elsewhere, according to several people at the lender.
Several Wall Street investment banks, both corporate and store protection, told the Financial Times that they had been stealthy and were also receiving inquiries from Credit Suisse bankers looking for work. One person who left recently said, “No one wants to be the last man standing.”
Other notable shortcomings from the two scandals include Credit Suisse’s chief financial services adviser Alejandro Przygoda, who left for Jefferies along with several members of his team. Two senior consumer industry bankers, Andrew Conway and Charles Habib, left last week to join Bank of America and Morgan Stanley, respectively.
Barclays has hired Credit Suisse’s technology and media-focused advisor Ihsan Essaid, who will become the head of mergers and acquisitions for the British investment bank in the Americas.
Over the past decade, Credit Suisse had built a major mergers and acquisitions business, advising on several important transactions, including Chevron’s. Acquisition of $ 13 billion of US energy group Noble and Charles Schwab’s $ 26 billion deal to buy US online brokerage TD Ameritrade.
To try to keep the key staff selected, Credit Suisse has offered retention bonuses, according to several people familiar with the details.
However, the policy has sparked more internal concerns for not being generous enough and offering too few people, with CEOs and team leaders prioritized above the lower ranks, according to people.
Shares of Credit Suisse have fallen 16% this year, compared with a 32% increase in Morgan Stanley and a 15% increase with national rival UBS, a new blow to staff who have seen their value decline. deferred salary in shares. .
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