Scandal-hit Credit Suisse mulls boss’s future
BELEAGUERED banking giant Credit Suisse has considered ousting its chief executive after a string of scandals and misfires.
Thomas Gottstein is facing a departure as early as this year, according to reports, as some senior directors are worried he is not getting a handle on the Swiss lender’s problems.
Credit Suisse said: “We don’t comment on rumours and speculation. The chairman clearly endorsed Thomas Gottstein. Nothing has changed in this regard.”
Last month, the lender warned profits would be hit by 600m Swiss francs (£485m) after “developments in a number of previously disclosed legal matters” began over a decade ago, which were not disclosed. Former chairman Sir António Horta-osório stepped down earlier this year over a trip to Wimbledon in breach of Covid rules.
The bank was still reeling from $5.5bn (£4.5bn) of losses caused by the collapse of clients Archegos Capital Management, which led to the departure of investment bank head Brian Chin and risk chief Lara Warner, and Greensill Capital.
The tumultuous period has hit investor confidence as well as prompting an exodus of talent.
While Mr Gottstein inherited a number of legacy issues, detractors say his team should have better managed the Archegos risks and taken more heed of warning signs with Greensill.
The bank tapped Mr Gottstein, a twodecade veteran, to restore confidence after the shock departure of Tidjane Thiam in February 2020 following a spying scandal.
He was the first Swiss-born head of the bank in almost two decades and took on the dual challenge of putting a stop to infighting and boosting a share price that lost almost half its value during Mr Thiam’s tenure. But just this year the bank has lost more than a quarter of its market value.
Mr Gottstein was seen at the time as an attempt to install a Credit Suisse banker at the top to end an embarrassing run of stories on the spying scandal and return the bank to stability.
Despite his investment banking expertise and success running the bank’s highly profitable Swiss business, he lacked the international profile and experience of some of his predecessors.