Senior UBS Banker Quits For Lazard

Ken Costa, an investment banking veteran who spent his entire 30-year career at UBS, abruptly quit the Swiss bank today to join its rival Lazard as deputy-chairman.

His exit is the latest in a string of departures at UBSs investment bank, although banking sources said that Mr Costa left on amicable terms and that the division had never been in better shape.

Mr Costa, 57, had been vice-chairman of UBSs investment bank as well as running the business line in Europe, the Middle East and Africa.

During a career almost exclusively working on mergers and acquisitions, he became close to clients as diverse as Standard Chartered, the emerging markets bank, and the Barclay Brothers, the billionaire owners of The Daily Telegraph.

Mr Costa has also advised Allianz, Europes biggest insurer, GUS, the former conglomerate owner of Burberry and Argos, and Vodafone.

He begins a short period of gardening leave before starting work at Lazard in the middle of next month.

His departure follows a turbulent period at the Swiss bank, which during Mr Costas tenure has merged and changed names several times.

Earlier this year, it lost Ken Moelis, the president of the investment bank, and Jeffrey McDermott, one of three global divisional co-heads.

As well as losing several other highly rated bankers, UBS was also forced to shut its $5 billion (£2.4 billion) fixed income hedge fund after it ran up losses in the US mortgage securities market.

The closure dealt a blow to its architect John Costas, the former head of investment banking who was sidelined to an advisory role as the funds investments were folded back into the bank.

At Lazard Mr Costa, who regularly advised clients on the opposing side, will work closely with William Rutter, also deputy chairman.

Mr Costa said key players at Lazard, including Bruce Wasserstein, the chairman and chief executive, first approached him to discuss a move several months ago. He said that, while he was sad to leave UBS, there were too many opportunities at Lazard for him to ignore.

UBS declined to comment on Mr Costas departure, but said it would not be replacing him immediately.

Mr Costa was one of a handful of investment banking vice-chairmen and is thought not to have had an operational role at the bank in recent times.

UBS, which has been making a big push into M&A, was the number one adviser in the UK at the end of the first half, according to Thomson, the data provider.

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