Credit Suisse’s investment banking to be scrutinized by new chairman: CEO By Reuters

© Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich

ZURICH (Reuters) – The structure of Credit Suisse (SIX:)’s investment bank will be scrutinised closely by incoming chairman Antonio Horta-Osorio, CEO Thomas Gottstein told a newspaper, as the bank aims to boost risk management after billions in losses on U.S fund Archegos.

“That is with certainty one of the core strategic themes that the board under the new chairman, together with the bank’s executive leadership, will be focusing on,” Gottstein told Neue Zuercher Zeitung on Tuesday.

Credit Suisse on Tuesday announced it was overhauling risk and investment banking leadership as it booked a 4.4 billion Swiss franc ($4.7 billion) hit from deals with U.S. hedge fund Archegos Capital Management that imploded.

“There are no sacred cows,” Gottstein added in the interview. “What we can already say is, we will be taking risks out of certain parts of investment banking. That certainly includes the Prime Services business” that serves hedge funds like Archegos.

Horta-Osorio is due to join the bank from Lloyds (LON:) Bank after current Chairman Urs Rohner retires this month amid several crises that have dragged on the Swiss bank’s reputation.

In addition to the costly Archegos blow-up that has engulfed Credit Suisse and other global financial institutions including Nomura, the Zurich-based bank has been in the crossfire over potential losses stemming from loans and funds with one-time billionaire Lex Greensill and his insolvent supply-chain finance company.

In the NZZ interview, Gottstein blamed Credit Suisse’s failings to adequately manage risks at least partly on the lack of face-to-face meetings with clients during the COVID-19 pandemic.

“It’s a challenge to manage a global bank during a pandemic over Zoom,” Gottstein told the newspaper. “I’m convinced that in the era of COVID-19 the scrutiny of risk business, whether for banks or insurers, has grown more difficult.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button