(Zurich) The Swiss banking giant UBS is in the process of reorganizing the teams in its investment bank, integrating some executives from Credit Suisse, in particular for mergers and acquisitions, according to an internal memo seen Monday by AFP.
In an email to employees, the bank announced details of 36 positions at the investment bank, six of which have gone to Credit Suisse executives.
They include David Kostel, who will combine the role of head of business coverage and director of the health sector, Marc Warm who will be co-head of debt and borrowing markets, Scott Lindsay and Robin Rankin who will be in charge Mergers and Acquisitions as well as Tom Churton who will be responsible for personnel.
In the memo, the bank says it is “committed” to extracting “power” from this union of the two banks.
“This combination strengthens our position as one of the world’s leading investment banks,” the bank told its employees, assuring that this combination will accelerate UBS’s growth strategy.
UBS also announces the departure of three executives from its own ranks.
Under pressure from the Swiss authorities, UBS agreed on March 19 to buy out its former rival for 3 billion Swiss francs (an equivalent sum in euros) in order to avoid bankruptcy.
This union of the two largest banks in Switzerland raises serious concerns for employment, particularly in investment banking, at the heart of several scandals that have seriously tarnished the image of Credit Suisse.
UBS, which must now begin to integrate Credit Suisse, has not communicated on its plans for the absorption of Credit Suisse since the merger was formalized on June 12.
The bank is due to release its quarterly results on August 31, and markets are awaiting details then.
In the meantime, rumors are swirling.
On Monday, Bloomberg reported that UBS was considering cutting two-thirds of investment bankers from the ranks of Credit Suisse in the Asia-Pacific region, citing sources familiar with the matter without naming them.
The cuts, which would be the first in a wave of layoffs, represent around 200 jobs in Asia.
On Friday, a source told AFP that a first wave of layoffs had begun, without giving figures.
At Credit Suisse, many executives have taken the lead, moving to competitors without waiting to be fired.
