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Laxman Pai, Opalesque Asia: Global wealth manager Credit Suisse Group is overhauling its asset management business. The Swiss bank is splitting away its asset-management unit from its business with wealthy clients, following the fallout of its relationship with collapsed firm Greensill Capital.
Credit Suisse is hiring the former head of rival UBS' money-management arm to run it.
The bank also warned of possible financial hits, reputational damage, and loss of clients and assets under management related to the situation.
Switzerland's second-biggest bank and its asset management arm are reeling from the implosion of around $10 billion of funds related to British supply chain financier Greensill, heaping pressure on CEO Thomas Gottstein.
The bank announced Thursday alongside its annual report that, effective April 1, Ulrich Körner will become CEO of asset management and a member of the executive board of Credit Suisse Group. As a member of the Executive Board, Ulrich Körner will report directly to the Group CEO, Thomas Gottstein, said a news release.
The asset management business will also be separated from the international wealth management division and run as a separate unit. This move emphasizes "the strategic importance of the asset management business for the bank and its clients," the release said.
The current Global Head Asset Management, Eric Varvel, will work alongside Ulrich Körner in the coming months to facilitate the transition, and ...................... To view our full article Click here
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