Mon. May 23rd, 2022

“I regret that a number of my personal actions have led to difficulties for the bank and compromised my ability to represent the bank internally and externally,” Horta-Osorio said in the statement. “I therefore believe that my termination is in the interest of the Bank and its stakeholders at this crucial time.”

Horta-Osorio joined Credit Suisse in April. The banker’s supporters have included major Credit Suisse shareholders such as David Herro of Harris Associates. “I’m very, very happy that the person at the top of the organization is extremely skilled and has a good understanding of risk,” Herro told Bloomberg TV in October. Herro had also been a supporter of former CEO Tidjane Thiam before his dismissal due to a spy scandal.

At the same time, Credit Suisse’s share has fallen under Horta-Osorio, and his management style has weakened somewhat. In an example from the summer of 2021, he told a meeting with bankers that the firm had a large wealth management business “with associated services”, according to several people who heard the remarks. For several top traders and traders, these words were perceived as a blow as the investment bank delivered more revenue than any other department in the firm.

“This is about personal responsibility in the professional context. To think that the chairman is above the law would have sent the wrong signal throughout the bank.

Sven Feldmann, Associate Dean at Melbourne Business School.

Addressing Lehmann, the bank appoints a Swiss insider who spent nearly two decades with Zurich Insurance Group and is well versed in risk management as Credit Suisse seeks to strengthen its defense after a $ 5 billion hit from Archegos. He was elected to the bank’s board of directors in October after being Chief Operating Officer at UBS Group AG and head of the bank’s Swiss division. Like Horta-Osorio, he has experience in retail and commercial banking, while he has had less exposure to investment banking.

Horta-Osorio’s six-month strategy review resulted in a simplified structure and the bank’s exit from the hedge fund business, however, the radical changes that characterized Deutsche Bank AG’s overhaul three years earlier stopped. Credit Suisse’s share has followed global peers since the revision plan was announced in November. There has been speculation about possible M&A.

“The ongoing turnover with management changes brings additional uncertainty,” wrote JPMorgan Chase & Co. analysts led by Kian Abouhossein in a note to customers. Speculations about a merger ”are in our opinion not credible, as the change of chairman will hardly be a trigger for this either; for now we see Credit Suisse continue as an independent entity. “

The banking giant has been hit by a number of scandals in recent years.

The banking giant has been hit by a number of scandals in recent years.Credit:Bloomberg

Lehmann’s appointment raises questions about whether he and Gottstein will continue with the strategy outlined at the end of last year, or whether they will seek to make further price changes, including further cuts to the investment bank. During his short time in management, Horta-Osorio also made several high-level director appointments, and Lehmann was also able to relocate to pick up his own people.

In a statement, Lehmann said the bank had “set the right course” with its strategic review and that it will continue to work to strengthen the risk culture across the bank.

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