Credit Suisse hires former UBS executives as head of risk committee

[ad_1]

Credit Suisse Group Update

Credit Suisse is drafting UBS’s former chief operating officer to lead the board’s risk committee, and the new chairman, António Horta-Osório, has strengthened the bank’s defenses after a series of scandals.

Axel Lehmann, who left UBS in January, will join the Credit Suisse board of directors on October 1. Juan Colombas, who previously held risk positions in the Lloyds Banking Group and Santander Bank under the leadership of Horta-Osório, will also join the Credit Suisse board of directors.

Credit Suisse’s reputation for risk management was hit this year by the double crisis surrounding the professional financial company Greensill Capital and the family office Archegos. These two incidents caused Credit Suisse to liquidate a $10 billion investment fund and lost $5.5 billion in its worst trading loss in its 165-year history.

A sort of Damn report The Archegos loss announced last month described the “fundamental failure of management and control” and “a loose attitude to risk” of Credit Suisse Investment Bank.

Horta Osorio, who led Lloyds Bank out of the financial crisis, Join the Credit Suisse Board of Directors In April, he said at the time that the bank’s plight was the worst situation he had encountered in his career. He also promised an urgent review of risk management, strategy and culture. The final details of the review are expected to be announced at the end of this year.

On Friday morning, Horta-Osório stated that the proposed appointment of Lehmann and Colombas to the board of directors will help strengthen Credit Suisse’s risk management.

“With their extensive experience in risk management and business leadership, as well as their careers in the financial services field spanning approximately three decades, they will be able to shape our bank’s strategic adjustments and strengthen our risk management and personal responsibility culture. Make a valuable contribution,” he said.

Lehman was the Chief Operating Officer and President of Personal and Corporate Banking at UBS. His career at UBS and Zurich Insurance Group includes multiple risk management positions.

Colombas served as Chief Risk Officer and Chief Operating Officer of Lloyds Bank from 2011 to 2020. Previously, he served as Executive Director and Chief Risk Officer of Santander Bank’s UK business. Since 2020, he has been a member of ING’s Audit and Risk Committee.

Andreas Gottschling resigned as head of the Credit Suisse Risk Committee in April, after several major shareholders stated that they would Vote against his re-election.

TSB Bank Executive Chairman Richard Meddings (Richard Meddings) has been the interim head of the Credit Suisse Risk Committee since April. He will continue to lead the bank’s audit committee.

Credit Suisse announced last month Hire David Wildmuth, Former Deputy Risk Officer of Goldman Sachs, served as Chief Risk Officer. Wildermuth will move from New York to Zurich in February 2022 to take up a new position.

[ad_2]

Source link