Credit Suisse Stock Up 6% as Another Key Dealmaker Departs
Credit Suisse announced a range of staff changes Tuesday, including the exit of Cathal Deasy, co-head of the lender’s European investment bank, according to Reuters. Shares of Credit Suisse surged more than 6% on the SIX Swiss Exchange.
Credit Suisse’s Co-Head of European Investment Banking Unit Exits Months After Promotion
Shares of Credit Suisse are up 6% in Tuesday’s trading as the bank announced a staff reshuffling after the co-chief of its European investment banking unit, Cathal Deasy, stepped down from his role, Reuters reported.
Deasy, promoted to regional co-head of Credit Suisse’s Investment Banking & Capital Markets (IBCM) unit just a few months ago, is set to be replaced by veterans Giuseppe Monarchi and Steven Geller. The move comes amid a broader overhaul at Credit Suisse, including a spin-off of its investment bank into a freshly re-branded entity.
From now on, Monarchy will serve as the IBCM head for Europe, the Middle East, and Africa (EMEA) region, while Geller will lead the mergers and acquisitions (M&A) team. Deasy’s duties as head of EMEA M&A will be handed over to William Mansfield, head of EMEA Consumer and Retail M&A.
Deasy’s departure marks the latest in a series of exits at Credit Suisse as the bank undertakes a major revamp, including thousands of layoffs and a strategic pivot from investment banking toward stable wealth management. Apart from reshuffles, the bank hired Credit Agricole banker Gen Oba as a new co-head of IBCM in France, Belgium, and Luxembourg.
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70 Key Dealmakers Departed Credit Suisse Since 2020
The announced staff changes follow in the wake of a tough year for the Swiss lender. But Credit Suisse’s woes date back to 2020 when it revealed its ties to the collapsed family office Archegos Capital which lost the bank $5.5 billion.
Since then, the lender has struggled to curb a set of departures of senior dealmakers, with around 70 managing directors leaving the investment banking unit during that period. Credit Suisse has been working to find suitable replacements ever since, especially in high-growth sectors like tech and healthcare.
Credit Suisse’s shares plummeted to an all-time low in November 2022 after investors sold rights to subscribe to the bank’s new shares. Just days before hitting the record low, Credit Suisse projected a $1.6 billion loss in Q4 after customers pulled out $88.3 billion in a bank run.
Do you think the latest Credit Suisse reshuffle will accelerate the bank’s recovery process? Let us know in the comments below.