The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Credit Suisse Group AG named Neil Hosie head of equities for Europe, Middle East and Africa, replacing Ryan Nelson who stepped down after bank lost $5.5 billion in the collapse of Archegos Capital Management.
Hosie will remain as head of equities for Asia Pacific, according to people familiar with the decision who asked not to be identified since the matter is private. He will relocate to London in due course, the people said.
The Swiss firm emerged as the biggest loser among global investment banks as Archegos blew up in March, forcing it to raise about $2 billion in fresh funds from investors to shore up its finances. The debacle wiped out a year of profit and left investors nursing heavy losses and questioning the bank’s controls after a string of hits and writedowns.
Nelson and John Dabbs, co-heads of prime brokerage, stepped down from their roles immediately after the implosion. The two will be assisting the lender through mid-May, according to an earlier memo.
The bank also saw a raft of other departures after the debacle, including investment banking head Brian Chin and risk chief Lara Warner. New chairman Antonio Horta-Osorio said last week that he backs Chief Executive Officer Thomas Gottstein, though he plans to undertake a review of the bank’s strategic options after Archegos and the Greensill Capital debacles.
Hosie joined Credit Suisse in 2017 from Deutsche Bank AG. He takes over in Europe amid plans to slash lending to hedge funds by a third to cut down on risk.
Its business in Asia was largely shielded from the debacle. The lender is building out its capabilities in the region, where its pretax profit more than doubled in the first three months of the year.