Finance

Credit Suisse asset management chief steps back amid Greensill fallout

Credit Suisse’s asset management chief, Eric Varvel, is stepping down as the Swiss bank deals with the fallout from its links with troubled supply finance firm Greensill and will be replaced by a former UBS veteran.

The Swiss bank has named Ulrich Körner as the new chief executive of its asset management unit and will separate it from the wealth management division, the bank said in an 18 March statement.

Körner, who had most recently been chief executive of Credit Suisse’s rival UBS’s asset management unit, will take over on 1 April and report to chief executive Thomas Gottstein.

The decision was taken “subsequent to the announcements regarding the Credit Suisse Asset Management (CSAM) managed supply chain finance funds”, the statement said.

READ Credit Suisse warns of potential charge from Greensill Capital fallout amid trading surge

Credit Suisse has suspended $10bn in funds linked to the insolvent supply chain finance firm, Greensill Capital. The firm is also facing charges linked to a $140m loan the bank made to the firm, of which $50m has been paid back.

At a conference this week, Gottstein said that the funds have returned $3.1bn to investors and have around another $1.3bn to give back. “I cannot promise a specific result. But I can promise that we will undertake all our efforts to reach the best possible outcome for our supply-chain fund investors,” he said.

Varvel will work with Körner to ensure a smooth transition and then focus on his roles as CEO Credit Suisse Holdings (USA) and chairman of the investment bank. He has been with the firm for over 30 years and has led the asset management unit since 2016.

READ Greensill Capital crashes into administration in UK following liquidity crunch

“Ulrich Körner is an excellent addition to our leadership team, reinforcing its values and performance culture. Ueli is a strong leader and strategic thinker with proven ability in business development and profitable growth in asset management, as well as in business transformation,” said Gottstein in a statement.

To contact the author of this story with feedback or news, email Paul Clarke

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