(Updates with cost-cutting target in fourth paragraph.)
Dec. 15 (Bloomberg) -- Credit Suisse Group AG, the second- biggest Swiss bank, plans to combine the operational functions of its private banking and investment-banking units from next year to lower costs.
Gary Bullock will lead global operations, reporting to Chief Financial Officer David Mathers, the Zurich-based bank said in a memo to employees yesterday. Credit Suisse spokesman Marc Dosch confirmed the memo’s contents.
“These changes will accelerate the development of more integrated operating and securities processing platforms across the bank, improving client access to our products and reducing the cost of delivery,” the bank’s executive board said in the memo. “These measures will also significantly contribute to the bank’s overall cost reduction efforts.”
Credit Suisse said last month it aims to cut annual costs by 2 billion Swiss francs ($2.1 billion) by the end of 2013. The bank is scaling down its investment-banking division and cutting 3,500 jobs amid market volatility that Chief Executive Officer Brady Dougan has compared to the 2008 credit crisis.
Bullock joined Credit Suisse in 2008 as head of operations for the investment bank after working for Morgan Stanley and UBS AG for 22 years. In his new role, he will be a member of the extended management committees for private banking and investment banking, the memo said.
Romeo Lacher, the head of private banking operations who was appointed to lead the western European wealth management business from January, and head of investment bank operations Stef Toffolo will work with Bullock through the transition.
--Editors: Keith Campbell, Dylan Griffiths.
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