Natixis CEO to be replaced

Dominique Ferrero, the chief executive of French corporate and investment bank Natixis, will lose his job today as part of the bank's restructuring plans.

The decision was taken by François Pérol, who is both chairman of Caisse Nationale des Caisses d'Epargne and chief executive of Banque Fédérale des Banques Populaires. The two banks each own a 35.62% share of Natixis and are in the process of merging. Ferrero's mandate, which is due to expire today, will not be renewed, Natixis said.

Laurent Mignon, a partner at Paris-based financial services company Oddo & Cie, has been named as a candidate for the vacant chief executive post, while Ferrero will be appointed adviser to Pérol.

Natixis posted a €2.62 billion loss for 2008 driven by losses on its equity and interest rate derivatives business amounting to €1.02 billion, and €863 million lost to counterparty defaults. In addition, on December 19, Natixis announced it would shut down its credit and structured credit prop trading desks, and run off its €19 billion prop credit portfolio, as well as halting its exotic equity, fixed-income and fund derivatives businesses, cutting 840 jobs in the capital markets business and saving 10% of operating costs by the end of this year.

See also: Natixis job cuts fail to impress