Credit Suisse expects Korner to be announced as CEO, latest change at the helm – sources

July 26 (Reuters) – Credit Suisse Group AG (CSGN.S) Ulrich Koerner is expected to announce a new CEO of the Swiss bank, in the latest management shakeup at the Swiss bank as it struggles to recover from a series of scandals, two sources familiar with the situation said on Tuesday.

Pressure has been mounting on current CEO Thomas Gottstein for several months due to major scandals and accumulated losses during his two-year tenure that have hurt stocks and angered investors. In recent months, some investors have called for Gotstein to be replaced, but the bank has resisted doing so.

The Financial Times reported that another senior executive, Christian Messner, head of the lender’s investment bank, is also planning to leave the group.

Register now to get free unlimited access to

One of the sources said the bank is expected to announce the change of CEO on Wednesday along with its quarterly results.

Credit Suisse declined to comment. Messner did not respond to requests from Reuters for comment.

When Gottstein took over as head of the bank in 2020, he promised a “clean slate” for the bank, which was recovering from an internal spying scandal that cost his predecessor Tidjan Thiam his job.

Since Thiam’s departure in February 2020, the stock has fallen 60% and problems at the bank have only escalated. In 2021, the bank disclosed a $5.5 billion loss from the breakup of US investment firm Archegos and the collapse of $10 billion in supply chain funds. The events prompted the overthrow of management, investigations and a capital increase – further losses and new legal cases followed. Read more

See also  PYPL Stock Rises on Better Than Fear Guidance, PayPal Shares Repurchased

Credit Suisse hired Koerner in April 2021 to lead its newly detached asset management division after the collapse of $10 billion of supply chain funds linked to insolvent financier Greensill Capital.

Korner returned to Credit Suisse from arch rival UBS, most recently serving as an advisor to the CEO from 2019 to 2020. He managed UBS Asset Management from 2014 to 2019. Korner was previously a Senior Executive at Credit Suisse Financial Services and ran the Swiss business. Read more

Korner, who used to work for McKinsey, is considered an expert in restructuring in Switzerland.

However, the appointment will follow other major European banks where diversity at the top has been lacking. The 25 largest banks by assets have seen 22 changes in CEO and president over the past two years according to a Reuters review of top industry roles. Twenty-one of these 22 jobs went to men. Read more

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

“I fully support him because he’s good,” Lyman said in an interview with CNBC at the World Economic Forum meeting in Davos. He dismissed talk of “rumors and speculation” that Gotstein may be on his way out.

The Wall Street Journal previously reported that Gotstein could be replaced soon, days after the Swiss newspaper Sonntagzeitung said the bank was considering further cost cuts. Read more

Additional reporting by Oliver Hurt in Zurich, Shivam Patel in Bengaluru and Elisa Martinozzi in London; Additional writing by Megan Davis; Editing by Devika Siamnath and Richard Boleyn

Our criteria: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.