News

Credit Suisse Turmoil After The Departure of the CEO

Credit Suisse faces severe turmoil after the sudden exit of the CEO from the bank

Credit Suisse will stick to the strategic reforms it has been working on despite the sudden departure of mastermind and board director Antonio Horta-Osorio following an internal investigation into his personal management, including a breach of COVID-19 mitigation laws, which pushed up the bank’s shares by 1.6 percent in early trading.

The Portuguese bank – the second largest in Switzerland – unveiled a new strategy in November to focus on wealth management, reining in its investment banking clients as well as limiting reckless decisions, and Horta-Osorio’s personal behavior was recently scrutinized after he violated Corona quarantine laws twice in 2021.

Informed sources in the company revealed that, in addition to the breaches related to the Covid-19 virus, investigations looked into the Horta-Osorio’s use of the company’s jet aircraft, specifically when he directed one of the planes to take him to the Maldives after returning from a business trip in Asia.

The Bank’s business has remained stellar despite the recent turmoil and no major management changes are currently underway, and CEO Thomas Gottstein was an important factor in the Bank’s ability to finalize the management transition, as the Board of Directors had agreed that it was time for Horta-Osorio to leave.

After a disastrous year, Credit Suisse announced that its third-quarter profit fell last year by 21% and warned of a big loss during the last three months of 2021, while UBS, Switzerland’s largest bank, reported its highest quarterly profit in six years during the third quarter, and with Credit Suisse’s stock tumbling 23% over the past year, its rival’s stock rose 33% to a four-year high.

Related Articles

Back to top button