Tag: nears

Exclusive: UBS nears major investment bank restructuring

by  on  in Business Financial News
UBS and Credit Suisse banks logos are seen in Zurich

Logos of Swiss banks UBS and Credit Suisse are seen on an office building in Zurich, Switzerland March 19, 2023. REUTERS/Denis Balibouse

NEW YORK, Aug 4 (Reuters) – UBS Group AG (UBSG.S) is poised to make sweeping changes to the senior ranks of its investment banking division globally as soon as Monday, marking a new milestone in the process of integrating Credit Suisse, people familiar with the matter said.

The changes are aimed at producing unified teams following the completion of UBS’s emergency takeover in June of Credit Suisse.

The changes are broad and involve several dealmaking groups, including healthcare, consumer/retail, financial sponsors and equity capital markets, the sources said.

Under the shake-up some Credit Suisse bankers will take on bigger roles in the combined company while some others leave, the sources said. Some UBS bankers will leave the firm as a result of the reshuffling, the sources said.

The restructuring is the latest move by CEO Sergio Ermotti to integrate UBS and Credit Suisse in a process that the bank has said would be painful, with tens of thousands of jobs hanging in the balance.

One of the team heads who is in discussions about potentially exiting is UBS’s global head of consumer products and retail deals, Jeff Rose, two of the sources said. Jon Levin, who has served as Credit Suisse’s head of retail investment banking, is in talks to replace him, the sources added.

Matt Eilers, UBS’s global head of financial sponsors, is also in talks about possibly leaving, two of the sources said. Rob DiGia, UBS’s global head of healthcare, will remain with the bank and is in talks about assuming a chairman-level role, according to two separate sources among those familiar with the matter.

The sources cautioned that the changes have not been finalized and

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SVB Financial nears approval to sell its investment banking business

by  on  in Business Financial News

NEW YORK, June 29 (Reuters) – A U.S. bankruptcy judge said Thursday that he would allow SVB Financial Group to sell its investment banking division, once the company has ensured that it is not releasing any liabilities related to the collapse of its Silicon Valley Bank unit.

U.S. Bankruptcy Judge Martin Glenn in Manhattan said during a Thursday court hearing that he could not approve the sale of SVB Securities to a group led by the subsidiary’s former CEO Jeff Leerink and backed by funds managed by The Baupost Group, as initially proposed.

Glenn said he was unsure if Leerink and other executives had any actual liability, but he could not grant them sweeping legal protections without more evidence.

James Bromley, an attorney for SVB Financial, told Glenn that it would remove the liability releases from the deal by Friday. Glenn said he would likely approve the sale once he reviews the revised deal.

At the court hearing, Glenn chastised SVB Financial for not clearly explaining or justifying a provision in the deal that would have released Leerink and other insiders from any liability associated with Silicon Valley Bank’s collapse.

“You’re releasing them from everything,” Glenn told SVB Financial’s attorneys. “I can’t believe you’d even try to sneak this by me.”

SVB Financial owned Silicon Valley Bank before it was seized by the U.S. Federal Deposit Insurance Corporation (FDIC) in March, and it is attempting to sell its remaining assets in bankruptcy.

Glenn also criticized the FDIC during the court hearing, saying he would not allow the agency to block SVB Financial from getting information about its seizure of about $2 billion from SVB Financial’ s bank accounts.

“I’m not going to put up with a lot of nonsense from the FDIC,” Glenn said. “They’re either going to play by

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