Credit Suisse CEO Thomas Gottstein is set to depart after some costly mishaps. Ulrich Körner is the likely replacement.
- Thomas Gottstein, Credit Suisse's chief executive, could depart the bank on Wednesday, the Wall Street Journal reported.
- Scandals related to Greensill Capital and Archegos Capital Management took place with Gottstein at the helm.
Credit Suisse's Chief Executive Officer Thomas Gottstein could depart the bank as soon as Wednesday, when the bank releases its results for the second quarter, according to a report from the Wall Street Journal. Ulrich Körner, who leads the bank's asset-management division is set to succeed him, the Financial Times reported.
The possibility of Gottstein's departure from the Swiss bank has been discussed for some months on Wall Street, especially as Credit Suisse has come under the microscope for costly risk management errors, two people who work for Credit Suisse, but were not authorized to speak publicly, told Insider.
Credit Suisse endured about $5.5 billion in losses from the Archegos Capital Management scandal in 2021. The bank also took a hit last year when its funds were heavily exposed to Greensill Capital, the supply-chain finance lender which went bankrupt last April.
A spokesperson for Credit Suisse declined to comment.
In the aftermath of the scandals, Gottstein has sought to improve the bank's reputation with investors, shareholders, and staff. Credit Suisse's share price is down roughly 47% year to date, and some senior bankers have exited the firm in the last 12 to 18 months.
To be fair, at least 14 managing directors were rehired by Credit Suisse, Insider reported in March. And under Gottstein, Credit Suisse also united its corporate-banking unit with its investment bank to try to right the ship at the beginning of this year.
One person who spoke to Insider had hoped Gottstein's replacement would be someone outside the bank.
"This institution has been drifting downwards for so long. So you need someone who will come in with an iron broom and say 'this is what we're going to do.' More of a true leader," this person said.
Körner rejoined Credit Suisse in March 2021 from UBS, where he ran its asset-management arm.
Other internal candidates that were rumored to be in contention for the top job include Francesco De Ferrari, head of Credit Suisse's global wealth business, and Christian Meissner, the CEO of the investment bank and CEO of the Americas region, the people that spoke to Insider said.
Meissner, however, is planning to leave the bank, according to the FT.
In May, there was talk that UniCredit CEO Andrea Orcel could take the top job at Credit Suisse, but the people that spoke to Insider were not convinced the Swiss bank would be able to afford him.
UniCredit's market cap is currently €17.3 billion ($17.5 billion) and Credit Suisse's is €13.9 billion.
Credit Suisse appointed Gottstein as CEO in February 2020 after Tidjane Thiam left the bank following a spying scandal.
"The bank needs a seismic wake-up call and strong leadership. Not more of the same," the first person said.
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