Weekly Global News Wrap: ECB defends aggressive COVID measures; Risk-taking billionaires key to Credit Suisse growth

And Barclays poaches Gautam Chawla from Citigroup.

From Reuters

European Central Bank (ECB) president Christine Lagarde defended the aggressive stimulus measures taken by the ECB in response to the coronavirus pandemic, saying they are proportionate to the risk faced by the euro zone.

Lagarde was facing criticism from conservative lawmakers from the Netherlands and Germany at a hearing in the European Parliament, with one comparing her to the ill-fated French queen Marie Antoinette.

The ECB’s massive purchases of government bonds have already come under fire from Germany’s Constitutional Court, which has given it three months to justify them or lose the German Bundesbank as the main buyer in its flagship debt-buying scheme.

From Reuters

Credit Suisse is banking on risk-taking billionaires to drive revenue growth at its wealth management division.

Philipp Wehle, the head of Credit Suisse’s international wealth management division, estimates this sort of activity could bring in around $400m in additional revenues until end-2022.

Wehle’s division grew revenues 6% to $1.57b (CHF1.5b) in the first quarter due to clients trading more. The division accounts for just under half of the bank’s overall pre-tax profit.

From Reuters

Gautam Chawla is joining Barclays from Citigroup, a statement from the British lender said on 5 June, continuing the recent spate of job changes amongst senior financiers covering the insurance industry.

Chawla’s title at Barclays will be vice chairman of the financial institutions group (FIG). He will be based in New York and report to Tim Main, global head of FIG banking, the statement added.

The announcement of Chawla’s impending move comes amidst a recent slew of movements involving senior investment bankers who cover the insurance sector. Citi announced on 18 May it had hired Jawad Haider from Credit Suisse as the bank’s new head of North America insurance investment banking.

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