Credit Suisse Group has named John Mack as CEO of its investment banking arm, Credit Suisse First Boston. Mack also becomes vice chairman of the group executive board, effective immediately.

Mack joined CSFB in March after leaving his role as president and COO of rival Morgan Stanley Dean Witter. He left MSDW after it became clear he was not in line for the top job there.

Mack says that his priorities at CSFB will include: building an organization based on teamwork, delivering the best possible products and services to customers, treating all of its people with respect and dignity. “Delivering on these goals, I believe we will compete even more effectively than ever with the world’s leading financial institutions.”

Mack replaces Allen Wheat, who is leaving “to pursue other interests”. He has been CEO since 1997, and it is believed that his exit comes partly in the wake of U.S. probes into CSFB’s involvement with dodgy IPO allocations. The U.S. Securities and Exchange Commission, U.S. Attorney’s office and NASD are investigating several large Wall Street firms over their IPO businesses in the heyday of the bull market.

Lukas Mühlemann, chairman and CEO of Credit Suisse, said, “John Mack is ideally suited to lead our combined investment banking and asset management business. He is well known and highly regarded worldwide as an executive with integrity, strategic vision and an intense focus on client needs. As a decisive, fair-minded leader, he knows how to successfully build cohesive, diverse teams with a common vision amid rapid growth.”

As of January 1, 2002, the asset management business will be combined with CSFB’s investment banking business under Mack’s management. The combined units will focus on serving global corporate, institutional and government clients in its role as a financial intermediary as well as providing asset management products and services through Credit Suisse Asset Management.

Credit Suisse Financial Services will include the group’s private banking and financial services businesses, offering financial advisory services — including insurance and pension solutions through Winterthur — for private and corporate clients. Thomas Wellauer, in his role as CEO of Credit Suisse Financial Services, will also assume responsibility for the group’s private banking operations.

Mühlemann said, “Our new organizational structure and strengthened management team will allow us to achieve even greater performance for our clients, employees and shareholders. It creates a sharper focus on our key areas of business and a more efficient global banking platform to compete with other leading global banking institutions amid rapid consolidation and changing market conditions.”