UBS changes bank chiefs

UBS revealed a comprehensive reformation of its investment banking division on Monday, a move that includes the appointment of new heads for the M&A unit. This strategic shift represents a significant advancement in the integration of Credit Suisse.

CEO Sergio Ermotti of UBS is leveraging the opportunity provided by the rescue takeover of Credit Suisse in March to revamp its investment banking arm for improved competition with Wall Street counterparts.

To facilitate this transformation, UBS is recruiting high-profile bankers from rival institutions and promoting talent from its own ranks and Credit Suisse. This organisational restructuring will also result in a considerable number of employees departing.

Within the scope of this investment banking overhaul, Credit Suisse’s David Kostel will assume the role of global co-head of coverage. Additionally, Tom Churton, also from Credit Suisse, has been appointed as the global chief of staff. These developments were outlined in a memo to staff that was reviewed by Reuters.

Christian Lesueur, formerly the global head of TMT Investment Banking at UBS, has been elevated to the position of global co-head of coverage. In this capacity, he will continue to oversee the technology, media, and telecoms sector, which will now be bifurcated into two distinct groups.

Nestor Paz-Galindo and Marc-Anthony Hourihan are set to be the global co-heads of M&A within the merged organisation.

As part of these changes, Michael Santini, the former executive chair of global banking, is among the executives who will depart. Some of these alterations had been previously reported on Friday.

In the Americas, Solon Kentas and Jeff Hinton have been designated as heads of mergers and acquisitions, while Brad Miller will lead equity capital markets. Michele Cousins will lead leveraged capital markets in the region, and Anthony DeRosa and Yuriy Oren will jointly head leveraged finance.

Of the more than 40 senior executives selected by UBS to steer the Americas businesses, 12 have transitioned from Credit Suisse.

Specifically in the Americas, Vik Hebatpuria will be responsible for the financial institutions group, Emre Gunalp will oversee global industries, Seth Damergy and Jason English will co-lead health care, and Max Justicz and Diron Jebejian will spearhead the financial sponsor group.

In the global sphere with a base in the Americas, Terry Sullivan has been appointed global head of the financial institutions group, and David Kostel will serve as global head of health care. Consumer and retail leadership will be assumed globally by John Levin, while Neil Meyer will be a global co-head for TMT.

UBS is anticipated to reduce its combined workforce by approximately 30%, a move prompted by an expansion to 120,000 employees following a state-brokered rescue. It is expected that Credit Suisse’s investment bank, back office, and Swiss retail bank will encounter the most significant impact.

Already, numerous Credit Suisse bankers have migrated to other institutions, and UBS has initiated layoffs for employees within Credit Suisse’s global investment banking division.

Approximately 80% of Credit Suisse’s investment banking staff based in Hong Kong will be affected by layoffs, with the process beginning this week. This development follows reports from Reuters, which cited individuals familiar with the matter.

Hong Kong constitutes the largest portion of Credit Suisse’s investment bankers in Asia.

Further changes at UBS include the appointment of Marc Warm as global co-head of leveraged and debt capital markets alongside David Slade. Scott Lindsay and Robin Rankin will both hold the position of global M&A chairman.