Feb. 10 (Bloomberg) -- UniCredit SpA, Italy’s biggest bank, appointed Jean-Pierre Mustier head of corporate and investment banking to succeed Sergio Ermotti, who stepped down in October after a management shakeup.
Mustier, the former Societe Generale SA investment-banking chief, will join on March 14 as deputy general manager and report to Chief Executive Officer Federico Ghizzoni, the Milan-based lender said in a statement today. The board backed Mustier, 50, with a unanimous vote, the bank said.
“He is the right person in the right place,” said Davide Serra, founder and partner of Algebris Investments LLP, a $1.4 billion hedge fund. “He came from a bank similar to UniCredit, in which the corporate division is just a part of the business, and he has a global vision,” Serra, who owns UniCredit shares, said in a telephone interview.
The corporate and investment banking business represented about 83 percent of the bank’s 903 million-euro ($1.23 billion) pretax profit in the third quarter.
Ghizzoni, 55, who replaced Alessandro Profumo as CEO in September, is putting in place a new management structure and is reviewing the bank’s strategy in some markets to increase profitability.
“Our management team is now completed,” Chairman Dieter Rampl said in the statement.
Mustier, who led the Societe Generale division that suffered a 4.9 billion-euro trading loss in 2008, was on a shortlist of three, which included 48-year-old RHJ International SA CEO Leonhard Fischer, people familiar with the discussions have said. Mustier will oversee financing and advisory, markets and transaction banking.
Mustier joined Societe Generale in 1987 in Paris as a stock options trader, holding positions at the investment bank in Paris, Tokyo and Hong Kong before becoming CEO of the corporate-and investment bank in 2003. He moved to lead the investment-management division in 2008 after the trading loss and left the bank in August 2009 amid a probe into insider trading.
The Autorite des Marches Financiers, the French market watchdog, fined Mustier 100,000 euros in June for selling shares of the bank in August 2007. He liquidated most of his equity portfolio at the same time. Mustier is appealing against the ruling.