Credit Suisse Confusion on Costly Trades Adds to CEO's Woes
- Illiquid trading positions to contribute to quarterly loss
- Thiam says positions a result of `unacceptable' practices
Credit Suisse CEO: There Needs to Be a Cultural Change
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Credit Suisse Group AG Chief Executive Officer Tidjane Thiam dropped a bombshell on investors: Caught off guard by a buildup of illiquid trading positions, the CEO said the bank will probably post a second straight quarterly loss as it unwinds the trades and deepens cuts at that business.
Thiam, less than two months after the bank disclosed losses on the positions that led to the biggest trading revenue drop among major banks, on Wednesday said that some of them were built unbeknownst to management in what he described as “unacceptable” practices. Yet within hours, he said the traders were operating within their limits, which may have been too high.