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It never rains but only pours at Credit Suisse.
Switzerland’s second largest lender has stumbled from one crisis to another in recent years.
There was the corporate spying scandal three years ago in which the bank was accused of hiring a private detective after one of its former executives had defected to a rival.
Shortly afterwards, the bank lost $5.5bn from its exposure to the collapsed hedge fund manager Archegos Capital, while it also suffered losses related to the collapse of the supply chain finance group Greensill Capital.
Other embarrassments included a string of fines for making fraudulent loans – nicknamed ‘tuna bonds’ – to the government of Mozambique between 2012 and 2016.
After these various setbacks Credit Suisse appeared to have pulled off a considerable coup when, in April 2021, it hired Antonio Horta-Osorio, the highly regarded former chief executive of Lloyds Banking Group, to become its new chairman. Investors were delighted when he promised to rebuild the bank’s reputation.
Unfortunately, in January this year, he was forced to resign after an internal investigation revealed he had broken COVID quarantine rules to attend the Wimbledon tennis championships and had also used the bank’s private jet to take a holiday to the Maldives.
He was followed out of the door in July this year by Thomas Gottstein, the chief executive, who resigned for what he described as “personal and health-related considerations”.
His successor Ulrich Korner, the bank’s fourth chief executive in just 17 years, has promised a major restructuring announcement before the end of the month in an attempt to cut costs and stem the flow of red ink that has characterised recent results.
The bank has reported a loss in five of the last seven quarters and in each of the last three due, chiefly, to issues in its investment banking division.
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Source : skynews
