Credit Suisse Names Brian Chin CEO of Global Markets -- 2d Update

By Emily Glazer 

Credit Suisse Group AG said Tuesday that longtime executive Timothy O'Hara, a top lieutenant tasked with helping Chief Executive Officer Tidjane Thiam restructure the European bank, is leaving the firm.

Mr. O'Hara, who late last year was appointed CEO of the bank's global-markets business, will be succeeded by the current co-head of credit, Brian Chin, who will also join the executive board.

The Swiss lender has been one of the worst performers among European investment banks, struggling to cut employees and costs, trim businesses and increase capital cushions to satisfy more stringent bank regulations.

Under Mr. Thiam, the bank tapped investors for about $6 billion of capital in late 2015. But it has been a rocky road, with the firm suffering nearly $1 billion in trading losses early this year.

The trading unit where Mr. O'Hara has long worked has been at the center of Mr. Thiam's efforts to restructure the firm. A spokeswoman for the bank declined to comment on the next step for Mr. O'Hara, who joined the bank in 1986.

New York-based Mr. O'Hara was promoted to oversee the bank's global-markets unit, which trades stocks and bonds and sells research to hedge funds, pension funds and other clients, as part of Credit Suisse's sweeping reorganization in October 2015.

But in the transition to replace Gael de Boissard, who previously led that division, there were questions over the chain of command within the markets business.

According to an April Wall Street Journal article, executives disagreed over who was responsible for the losses as they mounted in late 2015. Mr. de Boissard told the Journal through his lawyer that he "ceased to perform global head of fixed income duties of any kind with effect from the restructuring announcement" Oct. 21 and "ceased to have any reporting line to or from him."

The questions about losses, which came up later, focused on positions that included loans to companies at various stages of restructuring in the energy, utilities and housing industries, and securities backed by junk bonds.

Mr. Thiam said in a statement late Tuesday that Mr. O'Hara has "contributed enormously to the development of our Global Markets franchise, establishing market leading positions in many of our core products and services which he managed. I am especially thankful to Tim for steering Global Markets through its recent accelerated restructuring program" and returning the division to profitability in the second quarter.

As part of the management moves, the bank also announced that Eric Varvel has been appointed president and CEO of Credit Suisse Holdings Inc., in addition to his current role as global head of asset management. Mr. Varvel has been working at the firm for 25 years.

--Jenny Strasburg and Maria Armental contributed to this article.

Write to Emily Glazer at [e-mail]

(END) Dow Jones Newswires

September 06, 2016 21:51 ET (01:51 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.