Finance

Trading Places: Credit Suisse nabs Goldman risk boss; Barclays’ overhaul rages on

As Credit Suisse continues to reel from scandal, the bank tapped a Goldman Sachs executive as its next chief risk officer.

David Wildermuth will join Credit Suisse as chief risk officer on 1 February next year. He replaces Lara Warner, who was ousted in the wake of the collapse of family office Archegos, which has cost the Swiss bank $5.5bn.

Bank of America re-hired a senior Goldman Sachs dealmaker to lead its leveraged finance origination business in Europe. Uday Malhotra will join the bank as head of leveraged finance origination for Europe, the Middle East and Africa

Barclays named new leaders of its European mergers and acquisitions team in Europe as its massive shake-up continues as the bank looks to gain market share from its rivals. Omar Faruqui was named co-head of M&A for Europe, the Middle East and Africa, alongside Pier Luigi Colizzi, who was promoted to head of investment banking for continental Europe earlier this month.

Meanwhile, Tom Johnson and Peter Mason, who have been leading Barclays’ equity and debt capital markets business in Europe, the Middle East and Africa respectively, have been promoted to co-heads of capital markets in the region.

At Barclays, there is concern that all this hiring top-tier executives with hefty salaries will amp up the bank’s costs.

READ Hire ‘poor, hungry kids’ instead of ‘entitled’ grads to solve banker talent crisis, Xavier Rolet says

Meanwhile, Xavier Rolet, the former London Stock Exchange boss, says investment banks should hire “poor, hungry” graduates if they want to stave off a crisis among junior bankers, who are rebelling against the long hours culture and stressful working conditions. Rolet spent a decade in a trading role at Goldman Sachs.

Standard Chartered is offering a route into a front-line investment banking job for those from lower socio-economic backgrounds by scrapping the need for certain academic qualifications. There will be no requirement to have any level of exams, for example GCSEs, A Levels or undergraduate degree level study, which are often a requirement of internships.

French asset manager Natixis Investment Managers announced several senior appointments. Joseph Pinto will take on the role of head of distribution for Europe, Latin America, the Middle East and Asia Pacific and Christophe Lanne is the firm’s new chief administration officer. Both Pinto and Lanne, who was previously chief talent and transformation officer, will report to chief executive Tim Ryan.

London-based fund manager Alderwood Capital appointed Olive Darragh and Neil Cochrane as independent chairs. Darragh will chair the partnership committee of Alderwood Partners and Cochrane will serve as chair of the board of the Alderwood Fund.

Legal & General Investment Management appointed Steven de Vries as its new head of wholesale and retail distribution for the EMEA region.

De Vries, who worked as an independent consultant advising boutique asset managers and was previously head of global financial institutions at Janus Henderson Investors, will be based in LGIM’s Amsterdam office.

READ Irish investment bank Davy hires five as it eyes UK expansion post-Brexit

Jefferies will only allow employees back into its offices if they have been vaccinated against Covid-19. Rich Handler, the firm’s chief executive, and chairman Brian Friedman, told staff in a letter that the move was in reaction to employees’ health and safety concerns

Earnings season continued this week, as European leaders followed their Wall Street cousins with second quarter results.

As expected, it was time for the dealmakers to shine again amid the ongoing M&A boom. Barclays‘ investment bankers posted a record quarter despite a 40% slump in fixed income trading revenues, Deutsche Bankdoubled its fees from mergers and acquisitions advice, and BNP Paribasprofits jumped 27%.

Back in the US, boutique Evercore reported revenue that gained 36%, its best ever three-month period, while hiking pay in the first half by 33% in wake of a deal boom. Goldman Sachs became the last major bank not to formally hike junior pay to $100,000 as Morgan Stanley confirmed it would fall in line with the milestone set by its peers.

Credit Suisse also announced its earnings, with the unwelcome addition of a bumper report into what went wrong with Archegos.

M&A revenues tumbled by 34% in the second quarter as dealmakers left in the wake of the crisis. The report into the bank’s failings does not make for pretty reading either. The 172-page review  concludes that Credit Suisse’s $5.5bn loss from the collapse of the family office was down to a “fundamental failure of management” and a “lackadaisical attitude towards risk and risk discipline”.

The bank did not heed numerous warning signs and hollowed out talent within its prime services risk team, as the lender “focused on maximising short-term profits” at the expense of overlooking “voracious risk-taking”.

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