Credit Suisse Tries a New CEO After $1.7 Billion Loss
- Swiss bank says it will conduct comprehensive strategic review
- Review to cut cost base, may further shrink investment bank
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Credit Suisse Group AG replaced its embattled chief executive officer and said it would embark on a new turnaround plan just nine months after the last one, as the Swiss bank indicated it aims to slash the size of its investment bank in the face of mounting losses.
The firm tapped asset-management head Ulrich Koerner to be CEO starting next week, replacing Thomas Gottstein, who is resigning after a two-year tenure marked by scandal and huge losses. The firm, which posted a larger-than-expected 1.59 billion franc ($1.65 billion) second quarter loss, said the review will include cutting at least another 1 billion francs of costs and evaluating its securitized products trading unit.