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Credit Suisse CEO Said to Tell Staff Shorts Wrong on Capital

  • Shares hurt by hedge funds, Thiam said to write in memo
  • CEO said to tell staff it’s wrong to expect a capital raise
Tidjane Thiam.

Tidjane Thiam.

Photographer: Justin Chin/Bloomberg

Credit Suisse Group AG Chief Executive Officer Tidjane Thiam said hedge funds are wrong to assume that the Swiss lender will have to raise additional capital after the shares touched a fresh all-time low last week, according to two people with knowledge of the matter.

The lender’s share price is hurt by “an unusually high level of short positions,” Thiam wrote in a memo to staff last week, the people said, asking not to be identified because the contents are private. While some hedge funds are speculating on another capital increase, partly because of restructuring measures and operational losses, they’re “not correct,” Thiam wrote.