The word on the street is that Wheat?s dismissal is linked to a string of regulatory probes into CSFB?s activities, most recently allegations of initial public offering allocation abuses, though the group denies that Wheat?s departure is related to the affair.
Credit Suisse Group executives said the investigation had nothing to do with the immediate departure of Wheat, CEO since 1997. Wheat is departing to pursue other interests, according to the company.
Picking up the reins is John Mack, 56, who left Morgan Stanley in March, after losing a power struggle with Philip Purcell, that firm’s CEO.
Zurich-based Credit Suisse Group plans to reorganize into two units next year, merging asset management into CSFB under Mack’s leadership, according to reports. CSFB will encompass both investment banking and asset management services for institutional investors, companies and governments from next year.
Nicknamed “Mack the Knife” for his reputation as a cost-cutter, the new vice chairman has experience in leading a large firm, which is what CSFB has become following its acquisition of Donaldson, Lufkin & Jenrette.