Texas Capital Bancshares, Formerly Backed by Archegos Capital Management, Announces Staff Cuts as Part of Transformation Strategy Amid Volatile Banking Industry
Texas Capital Bancshares, a Dallas-based bank that was formerly backed by Archegos Capital Management, has announced staff cuts as part of its transformation strategy amid a volatile time for the banking industry. According to a spokesperson, the bank eliminated or consolidated certain positions consistent with the plan, but the spokesperson declined to specify the number of jobs eliminated. The Dallas Business Journal previously reported that the bank cut as much as 10% of its workforce. The company's annual report shows that it had 2,198 employees as of December 31.
Archegos Capital Management thrust Texas Capital into the spotlight in 2021 after it was reported that the firm had built an undisclosed 20% stake in Texas Capital. This stake propped up the bank's share price, which plummeted after Archegos went under. As a result, Texas Capital has been executing its transformation strategy, which involves consistently delivering operating efficiencies through the investment in better technology, products, processes, and client experience.
Over the past couple of years, Texas Capital has been focusing on expanding its wealth management and treasury services. The bank also launched an investment banking arm in a shift away from just strictly offering loans. Moreover, the firm is planning to offer an exchange-traded fund that would give investors exposure to companies based in Texas. It would be the first ETF from Texas Capital Bank, and it would track an index of about 200 firms in the Lone Star State, according to a filing.
Texas Capital hired ETF veteran Ed Rosenberg this year and last week named former Goldman Sachs Group Inc Managing Director David Youngberg Jr. as its chief credit officer. Youngberg had worked in the risk division office of Goldman's Dallas office.
Texas Capital is set to release its first-quarter earnings report on Thursday. The company has been making moves to transform itself to better compete in a volatile banking industry, including expanding its services and hiring new talent.
Members of LevelFields received the alert of this event on April 19, 5:15 AM ET
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions,and let LevelFields help you become a better trader.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.