We haven’t heard this anywhere else—which could conceivably mean it’s old news—but what the hey, it’s a short week and we’re feeling kind of frisky and peppier than usual thanks to three extra espresso shots in our standard iced coffee, etc., so here it is: is Jim Healy, head of fixed income at Credit Suisse about to resign from the bank out of resentment over his new place in the CS hierarchy, following the promotion of Diet Dr. Pepper-swilling Brady Dougan to chief executive and the hire of Michael Ryan from Goldman Sachs as head of securities? According to Dan Freed at Investment Dealers’ Digest, Healy’s hurt feelings may be more deep-seated than just the recent shake-up, more along the lines of Britney-pulling-a-Sinead-O’Connor-over-the-weekend-was-the-straw-that-broke-the-K-Fedian-camel’s-back and not exactly something that—let’s be honest—we weren’t all calling back in ’05 (or, you know, after Crossroads). Anyway, Freed writes:
While Healy and Dougan are long-time colleagues, there is friction between them, says the executive familiar with Healy's thinking. That is because Healy supported a decision by former CEO John Mack, now head of Morgan Stanley to send Dougan to London in March 2004, the executive says. That decision was widely viewed as a demotion for Dougan, but, according to news reports at the time, Dougan turned the tables on Mack, using his position in London to build relations with Credit Suisse influentials in Zurich. The board ousted Mack three months later and Dougan moved back to New York to become CEO of the investment bank. Spokespeople for Credit Suisse declined to make Dougan or any other executives available for comment, and they also declined all comment.
The hire of Ryan, announced Feb. 5, was effectively a demotion for Healy, as it inserted a new layer of management between him and Dougan. Prior to Ryan's recuitment, Healy had reported directly to Dougan as head of fixed income, alongside equities head Tony Ehinger. Now Ryan, 39, will supervise Healy and Ehinger. Healy is especially miffed because Ryan has little or no fixed income experience, says the executive familiar with his thinking. Ryan did not respond to a call or email at Goldman, where he is still working for now.
Interestingly—or interestingly-ish—enough, Healy, while declining to comment to IDD, was reachable in his office on the evening of February 14. So perhaps the impetus for the possible resignation is coming more from Mrs. Healy, who’s “sick and tired of having a relationship with [your] Blackberry!” than any chafing with Dougan et al. Or not. Your guess is as good as—or maybe better than—ours!
(We’re self-deprecating today. Roll with it).
Credit Suisse Fixed Income Chief to Resign? [IDD]