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Credit Suisse's O'Hara departs from Global Markets CEO role

Published 07/09/2016, 07:53
Updated 07/09/2016, 08:00
© Reuters. Logo of Swiss bank Credit Suisse  is seen in Zurich
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(Reuters) - The head of Credit Suisse Group AG's (S:CSGN) Global Markets division Timothy O'Hara has stepped down just over 10 months into the job and will be replaced by Brian Chin, the bank's co-head of credit.

O'Hara, who joined Credit Suisse in 1986, took charge of the newly formed Global Markets division on Oct. 21 in a major restructuring of the bank by group Chief Executive Tidjane Thiam.

The division oversaw around $1 billion in trading write-downs at the end of 2015 and start of 2016.

Thiam, who took over at Zurich-based Credit Suisse in July 2015, said at the time that he and other senior bank officials were unaware of the size of the positions behind the losses. Thiam also said O'Hara retained his total confidence.

Chin, with Credit Suisse since 2003, will take O'Hara's place on Credit Suisse's executive board.

"Since joining the bank in 2003, Brian has been one of our strongest risk managers," Thiam said in a statement late on Tuesday. "He is well positioned to take Global Markets to the next stage in its development."

Global Markets is one Credit Suisse's two investment banking divisions, and handles equities and fixed income trading in the Americas and Europe, Middle East and Africa.

After two consecutive quarterly losses, the division returned to profitability in the second quarter of 2016.

"I am especially thankful to Tim for steering Global Markets through its recent accelerated restructuring program, returning the division to profitability in Q2 and ensuring that some of the positive momentum of the division in Q2 has continued over the summer months," Thiam said.

Under Thiam, Switzerland's second-biggest bank behind UBS (S:UBSG) is looking to pare back its investment bank and focus more on wealth management.

Credit Suisse also appointed Eric Varvel as president and CEO of Credit Suisse Holdings (USA), Inc, the bank's recently designated intermediate holding company.

The changes are effective immediately, Credit Suisse said.

© Reuters. Logo of Swiss bank Credit Suisse  is seen in Zurich

"I am confident," Thiam said, "that these management changes that I have proposed and that have been approved by the board of directors of Credit Suisse Group AG will drive a continued improvement in the performance of our bank."

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