Credit Suisse’s top deal maker in the United States has resigned. He is a senior employee who recently defected from UBS. The bank is struggling to retain top talent after a series of scandals that smashed employee morale.
People familiar with the matter said that Greg Weinberger, who has been in charge of mergers and acquisitions at Credit Suisse since 2019, will join Morgan Stanley later this year. He has worked in the bank for more than 25 years.
Credit Suisse and Morgan Stanley declined to comment on the move first reported by the Wall Street Journal.
After the back-to-back crisis involving Archegos Capital and Greensill Capital, Weinberg served as an advisor to many US companies including Chevron.
Earlier this year, Bill Hwang’s family office, Archegos, exploded, and the prime brokerage unit that provides services to hedge funds lost at least $5.5 billion.Bankers who were not involved in the matter were furious with Credit Suisse Otherwise it will report Driven by the capital market and M&A advisory business, this is the best quarter in at least a decade.
The trading losses occurred after the closure of the $10 billion supply chain finance fund related to the bankrupt financial group Greensill Capital by Credit Suisse. This could cost the bank’s customers as much as US$3 billion, and it is under investigation by global regulators.
As a result, Brian Chin, head of investment banking at Credit Suisse, left the bank with Lara Warner, chief risk and compliance officer. The head of the prime brokerage department was also removed.
The new chairman, António Horta-Osório, promised to reduce the size of investment banks and completely reform the culture and Control riskSeveral people within the bank said that the prospect of further layoffs and strategic changes has caused many employees to start looking for jobs elsewhere.
Many Wall Street investment banks, including large investment banks and boutique companies, have told the Financial Times that they have been digging for people and have received inquiries from Credit Suisse bankers seeking employment. A person who left recently said: “No one wants to be the last to stand.”
Since the two scandals, other high-profile defections include Alejandro Przygoda, Credit Suisse’s top financial services consultant, who went to Jefferson with several members of his team. Rui. Last week, two senior consumer industry bankers Andrew Conway and Charles Habib resigned and joined Bank of America and Morgan Stanley respectively.
Barclays has hired Credit Suisse’s technology and media consultant Ihsan Essaid, who will become the head of the British investment bank’s mergers and acquisitions in the Americas.
In the past ten years, Credit Suisse has established a substantial M&A business, advising on several major transactions, including Chevron’s $13 billion acquisition US energy group Noble Group and Charles Schwab acquired US online broker TD Ameritrade for US$26 billion.
According to several people familiar with the matter, in order to retain selected key employees, Credit Suisse has been offering retention bonuses.
However, people familiar with the matter said that the policy has caused further unease internally because it is not generous enough and available to too few people, with managing directors and team leaders taking precedence over lower levels.
Credit Suisse’s share price has plummeted by 16% this year-in contrast, Morgan Stanley’s share price has risen by 32%, and domestic competitor UBS’s share price has risen by 15%-this pair has seen the value of stock deferred wages. It is a further blow for the declining employees.