Six Credit Suisse Financial Advisers Leave Ahead of Overhaul
October 09 2015 - 2:40AM
Dow Jones News
Two groups of financial advisers managing about $4.5 billion in
total recently left Credit Suisse AG ahead of a strategic overhaul
that will be announced later this month.
Three advisers—Christopher Baldwin, Thomas Tyndorf and Andrew
Skoglund—joined Bank of America Corp.'s Merrill Lynch brokerage in
Chicago as part of its private banking and investment group, which
caters to investors with $10 million or more in assets. Another
three, Ross Kennedy, Richard Cantwell and Stephen Michael, were
hired by UBS Group AG's U.S. wealth-management arm to work out of
Boston earlier this month.
The trio that went to Merrill oversaw roughly $3.5 billion in
client assets at Credit Suisse, while Messrs. Kennedy, Cantwell and
Michael managed $1 billion and generated $7.2 million in annual
fees and commissions, spokeswomen for Merrill and UBS said.
In July, Credit Suisse Chief Executive Tidjane Thiam said the
company was working on a strategic review.
The firm said it would announce its plans on Oct. 21. On
Thursday, the Financial Times reported that Credit Suisse plans to
announce a "substantial" share sale to raise capital, and it said
the overhaul may include plans to sell off specific units,
including the U.S. private-banking group.
A Credit Suisse spokeswoman confirmed the departures but
declined to comment on the news report and the possibility of a
sale of its private-banking unit. In a statement Thursday, the
Swiss bank said, "We are conducting a thorough assessment of Credit
Suisse's strategy, evaluating all options for the group, its
businesses and its capital usage and requirements."
Credit Suisse's U.S. private bank is estimated to be worth
between $415 million and $623 million, with $115 billion in assets
and employing roughly 370 advisers, according to a Morgan Stanley
analyst report last month.
Messrs. Baldwin and Tyndorf had been at Credit Suisse since
2000, joining the firm through its acquisition of Donaldson Lufkin
& Jenrette. Mr. Skoglund previously worked at J.P. Morgan Chase
& Co. as an adviser. Messrs. Kennedy and Cantwell also joined
Credit Suisse through its Donaldson Lufkin acquisition. They joined
the firm in 1992 and 1993, respectively. Mr. Michael joined Credit
Suisse in 1993.
Merrill and UBS didn't make the hires immediately available for
interviews.
Write to Michael Wursthorn at michael.wursthorn@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 09, 2015 02:25 ET (06:25 GMT)
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