updated 6/25/2004 7:56:03 AM ET 2004-06-25T11:56:03

Credit Suisse Group's co-CEO John J. Mack will leave in July, also giving up the leadership of its U.S.-based Credit Suisse First Boston investment banking arm.

Mack has agreed with the board of directors not to renew his contract, which will expire July 12, Credit Suisse said Thursday.

The management shakeup means Oswald Gruebel, who currently shares the job with Mack, will become the sole chief executive of Credit Suisse Group, which includes Switzerland's second-largest bank after UBS.

"On behalf of the board of directors I wish to express our appreciation for everything that John J. Mack has accomplished at CSFB and Credit Suisse Group," said Walter Kielholz, the group's chairman.

"He led a dramatic turnaround of CSFB — delivering a $1.4 billion profit last year, enhancing its reputation by resolving major regulatory challenges and strengthening the franchise in key areas."

Mack, an American citizen, joined CSFB as chief executive in July 2001, after almost three decades at Morgan Stanley. He was appointed co-CEO of Credit Suisse Group in January 2003.

Credit Suisse Group has bounced back from a record 3.3 billion franc (then $2.4 billion) loss in 2002, the worst performance in its 149-year history. Last year, the group posted an overall profit of 5.2 billion francs (then $4.2 billion).

The losses triggered a restructuring plan that resulted in 7,750 job cuts, with Credit Suisse Group focusing in particular on CSFB — which was responsible for $1.2 billion of the 2002 loss.

When Mack leaves CSFB, Brady W. Dougan will be named CEO of CSFB, the group said. Dougan, who joined CSFB in 1990, has previously held a series of senior positions in the firm, most recently co-president of institutional securities.

Credit Suisse, based in Zurich, also said it aims to boost group growth by restructuring its banking businesses, and that it is exploring all options for increasing the value of its insurance operations.

Starting July 13, the Credit Suisse Group is to be restructured along three business lines _ investment banking and wealth and asset management under CSFB; financial services, including global private banking and corporate and retail banking in Switzerland, under Credit Suisse; and insurance under the group's Winterthur arm.

"At this point in time, we have no interest in pursuing a merger with another financial institution," Kielholz said. "Credit Suisse Group's financial performance has improved significantly as a result of strong measures taken by management."

Copyright 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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