Sunday, August 14

Credit Suisse CEO Thomas Gottstein set to depart -WSJ

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Credit Suisse Group AG is set to announce the departure of Chief Executive Officer Thomas Gottstein, the Wall Street Journal reported on Tuesday, citing people familiar with the bank.

The timing of Gottstein’s exit could not be determined but an announcement could come as soon as Wednesday, when the bank reports its quarterly results, the report said.

Credit Suisse declined to comment on the report.

The Journal also said it could not be determined who would replace Gottstein.

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Pressure has been mounting on Gottstein for months over major scandals and losses racked up during his two-year tenure that have hammered shares and angered investors.

When Gottstein took the helm in 2020, he promised a “clean slate” for the bank, which was recovering from a internal spying scandal that cost his predecessor his job.

But troubles have only escalated. In 2021, the bank disclosed a $5.5 billion loss from the unraveling of US investment firm Archegos and the collapse of $10 billion worth of supply chain finance funds. The events prompted management ousters, investigations, and a capital increase – followed by further losses and fresh legal cases.

This spring, Credit Suisse’s chairman Axel Lehmann reiterated his support for Gottstein after Artisan Partners, the bank’s ninth-largest shareholder, had publicly called for Gottstein to be replaced.

“I fully back him because he is good,” Lehmann said in a CNBC interview at the World Economic Forum meeting in Davos. He dismissed as “rumors and speculations” talk that Gottstein could be on his way out.

The WSJ’s report that Gottstein may soon be replaced comes days after Swiss newspaper SonntagsZeitung reported the bank is considering further cost cuts. (Reporting by Shivam Patel in Bengaluru and Elisa Martinuzzi in London; Editing by Devika Syamnath)

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