John Mack To Be Succeeded By Oswald Gruebel Only At CSFB

The departure announced last week by investment bank CSFB of Co Chief Executive John Mack means Oswald Gruebel becomes and will remain its sole CEO. The departure marks Mack's second abrupt departure from a major investment bank, the 59 year

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The departure announced last week by investment bank CSFB of Co-Chief Executive John Mack means Oswald Gruebel becomes and will remain its sole CEO.

The departure marks Mack’s second abrupt departure from a major investment bank, the 59-year-old executive having quit Morgan Stanley in a similar way in 2001.

Mack was hired by CSFB to cut costs at the bottom of the bear market, at did exactly that. Replacing Allen Wheat as CEO, he cut thousands of jobs and $3 billion in costs during his tenure. Partly as a result, CSFB turned a $1.2 billion loss in 2002 into a profit of $870 million in 2003. Earlier this year, he launched an ambitious plan to double the firm’s profit by 2006.

CSFB nevertheless lags its major competitors in areas such as M & A fees, and the Swiss parent doubtless felt the time had come for more spending and less slashing.

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