Credit Suisse CEO to step down from embattled investment bank, WSJ says
Credit Suisse Chief Executive Thomas Gottstein addresses the Finanz und Wirtschaft Forum conference in Zurich, Switzerland, September 2, 2020.
Arnd Wiegmann | Reuters
Credit Suisse CEO Thomas Gottstein is about to step down from the embattled investment bank, the Wall Street Journal reported on Tuesday.
The Zurich-based bank will soon announce the departure of Gottstein after a tenure that included a series of embarrassing mishaps and several unprofitable quarters, according to the Journal. His replacement couldn’t be determined, the newspaper said.
Candice Sun, a spokesperson for the bank, declined to comment on the report.
Credit Suisse is set to report second-quarter results on Wednesday, and it has already warned investors that it will lose money. The bank blamed worsening economic conditions in Europe and Asia for the loss.
Gottstein, a two-decade veteran of Credit Suisse, took over in early 2020 from predecessor Tidjane Thiam, who resigned after a spying scandal. Gottstein was soon wrestling with the costly fallout from the meltdown of two key clients: the Archegos family office and supply-chain finance firm Greensill.
Investors have been calling for change atop Credit Suisse amid the risk management failures and a sagging stock : Shares of the bank are down 46% this year.
That’s considerably worse than the 21% decline of the U.S.-centric KBW Bank Index; American banks reported mixed second-quarter results earlier this month, with sharp declines in investment-banking revenue, but all six of the biggest U.S. banks had profitable quarters.