Credit Suisse has tapped a Goldman Sachs executive as its next chief risk officer as the Swiss bank continues to reshape its leadership in the wake of the twin crises of Archegos and Greensill.
David Wildermuth will join Credit Suisse as chief risk officer on 1 February next year, the bank said in a statement. He replaces Lara Warner, who was ousted in the wake of the collapse of family office Archegos, which has cost the Swiss bank $5.5bn — far more than its peers.
Credit Suisse chairman António Horta-Osório has been eyeing a shake-up of the bank as he deals with the fallout from the twin crises of Archegos and its exposure to the collapse of supply chain finance firm Greensill Capital.
The bank has already ousted senior executives including its investment bank boss, David Chin, who was replaced by Bank of America veteran Christian Meissner.
Wildermuth has spent 34 years in the industry including a number of senior risk roles at Goldman. He joined the US bank in 1997 and has been deputy chief risk officer for the past six years. He was also previously chief risk officer for Europe, the Middle East and Africa.
Horta-Osório said Wildermuth “will help shape the group’s enhanced risk management framework, an essential part of the bank’s strategic realignment currently underway”.
While the Archegos scandal has hit Credit Suisse’s prime services unit, which services hedge funds, it has also had an impact on its broader investment bank. Concerned about the hit to bonuses, and in the midst of a deal boom, around 30 senior investment bankers have departed for competitors in recent months.
The bank has paid one-off bonuses and has been offering salary rises and counter-offers of up to 30% for senior dealmakers it wants to keep, Financial News has reported.
Wildermuth’s hire is the second senior Goldman Sachs recruit within weeks at Credit Suisse. Joanne Hannaford was unveiled as its new chief technology and operations officer earlier this month.
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