Credit Suisse Has Some Painful Choices to Make
The immediate need is for strong leadership to steady the ship and keep hold of the best performers during a dark moment for the firm.
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Photographer: Michele Limina/BloombergCredit Suisse Group AG is suffering serious financial pain after stepping on several rakes at once. It should be able to cope, but it can’t afford to put another foot wrong. The Swiss bank’s global wealth business is its most prized asset and there’s a danger that its reputation — especially among Asian and Middle Eastern clients — will be contaminated by the lender’s woeful risk management, revealed by its exposure to last month’s blowups of Greensill Capital and Archegos.
New leadership is on the way with Antonio Horta-Osorio taking over as chairman imminently. Just as important, the experienced former Bank of America executive Christian Meissner is stepping up to take control of the ailing investment bank. Chief Executive Officer Thomas Gottstein has survived thus far because he’s relatively new to the job, but it’s been the worst possible start to his reign. On a conference call on Tuesday, the CEO pointed to Horta-Osorio’s arrival as a chance to reassess the bank’s strategy, according to Bloomberg News.