About a dozen managing directors at Credit Suisse have recently left the banking giant or are in the process of doing so, with most of them poached by rivals including Barclays, Goldman Sachs and Citibank.
Moreover, a range of senior bankers are expected to announce their departure in the coming weeks, with several others also considering their options, according to multiple media reports.
The exodus of senior investment bankers at the Swiss banking group comes only months after the dramatic collapse of US hedge fund Archegos Capital Management, a scandal that rocked Credit Suisse and came on top of Greensill Capital’s losses, also a client.
Barclays reportedly circled Credit Suisse’s media and telecom specialist Ihsan Essaid, who will join the British bank’s co-head for mergers and acquisitions across the Americas.
Also joining Barclays is Kamal Ahmed, who will become the bank’s global head of semiconductor business, while financial institution specialist Tim Devine and David MacGown have also accepted offers from Canary Wharf.
Meanwhile, financial services banker Chris Eby has left Credit Suisse for Goldman Sachs, while Nick Daly, also in the financial institutions group, has joined Bank of America.
Moreover, industrial banker Christian Bradeen has been hired by Perella Weinberg Partners, while transportation specialist Jason Wortendyke is returning to Citigroup, where he will head the global diversified industrials team.
In addition, healthcare banker Leo Reif has joined Jefferies Financial Group and Simon Auerbach, a news and information industry specialist, also handed in his resignation at Credit Suisse.
Many of the bankers have voiced their frustration over Credit Suisse’s failure over the prime brokerage division, which served clients such as Archegos. They reportedly feel management has done little to control the damage that the hedge fund’s collapse has caused.
Archegos and Greensill dramas
The collapse of the family office, run by former Tiger Asia manager Bill Hwang, in March saw its brokers take a $10bn hit, plunging Credit Suisse into the red as it forced the bank, and others, to sell stock positions at great losses.
Following the drama, some of its most senior managers were forced to leave. The saga was a further blow to Credit Suisse following the collapse of Greensill Capital, which was also a client.
The chief executive of its asset management business was ousted and the bank announced plans to separate the division that has faced scrutiny over its Greensill-backed funds.
When approached by City A.M. this evening, no one at Credit Suisse’s offices in London or Zurich was available to comment.