TOP NEWS: Credit Suisse Names Outgoing Lloyds Chief As Next Chair

(Alliance News) - Credit Suisse Group AG on Tuesday said it has chosen outgoing Lloyds Banking ...

Alliance News 1 December, 2020 | 7:24AM
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(Alliance News) - Credit Suisse Group AG on Tuesday said it has chosen outgoing Lloyds Banking Group PLC Chief Executive Antonio Horta-Osorio to be its new chair.

Horta-Osorio will succeed Urs Rohner as chair of the Swiss bank's board of directors. Rohner became full-time chair in 2009 and will step down in 2021 once he has reached his statutory 12-year term.

Credit Suisse will propose Horta-Osorio's election to shareholders at its April 30 annual general meeting. His departure from Lloyds after 10 years at the helm was announced in June.

Lloyds on Tuesday said it has agreed for Horta-Osorio to depart the UK bank on April 30, so that he can take up the chair of Credit Suisse on May 1. Previously, he was intending to leave Lloyds by the end of June 2021.

Horta-Osorio served on the Court of Directors of the Bank of England from 2009 to 2011. Other previous roles including executive vice president of Banco Santander SA in Spain from 2000 to 2010, as well as from 2006 to 2010 as chief executive officer of Santander UK. He is 56 years old and a Portuguese citizen.

Lloyds has picked HSBC Holdings PLC's Wealth & Personal Banking head, Charlie Nunn, as its next chief executive.

Lloyds had said on Monday that Nunn's start date depends on agreement with HSBC. It noted that Nunn's contract calls for a six-month notice period and up to six months post-termination restrictions. The bank said that if Horta-Osorio steps down before Nunn's arrival, then Chief Financial Officer William Chalmers will be acting CEO.

Also on Tuesday, Credit Suisse issued an update on its legacy US residential mortgage backed security case. Credit Suisse and MBIA Inc have been in a legal dispute in New York since 2009 concerning warranties regarding US RMBS issued in 2007.

On Monday night, the judge presiding over this case issued an order requiring that both parties submit damage estimates in respect of these mortgages, which could result in a judgement against Credit Suisse of as much as around USD680 million.

"While Credit Suisse believes that it has strong grounds for appeal, it has already taken provisions totalling USD300 million in prior periods in connection with this case, and would expect to increase its RMBS-related provisions as a consequence of this order," the company said.

By Anna Farley;

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