Credit Suisse Group AG is expected to announce Ulrich Koerner as its new chief executive officer, replacing Thomas Gottstein, two sources familiar with the situation said on Tuesday.
Pressure has been mounting on Gottstein for months over major scandals and losses racked up during his two-year tenure that have hammered shares and angered investors. When Gottstein took the helm in 2020, he promised a “clean slate” for the bank, which was recovering from an internal spying scandal that cost his predecessor his job.
But troubles have only escalated. In 2021, the bank disclosed a $5.5 billion loss from the unraveling of U.S. investment firm Archegos and the collapse of $10 billion worth of supply chain finance funds. The events prompted management ousters, investigations, and a capital increase – followed by further losses and fresh legal cases. A Wall Street Journal report said the timing of Gottstein’s exit could not be determined but an announcement could come as soon as Wednesday, when the bank reports its quarterly results.
Credit Suisse brought in Koerner in April 2021 to lead its newly separated asset management division following the collapse of the $10 billion worth of supply chain finance funds linked to insolvent financier Greensill Capital. Credit Suisse declined to comment.
This spring, Credit Suisse’s chairman Axel Lehmann reiterated his support for Gottstein after Artisan Partners, the bank’s ninth-largest shareholder, had publicly called for Gottstein to be replaced. “I fully back him because he is good,” Lehmann said in a CNBC interview at the World Economic Forum meeting in Davos. He dismissed as “rumors and speculations” talk that Gottstein could be on his way out.
The WSJ’s report that Gottstein may soon be replaced comes days after Swiss newspaper SonntagsZeitung reported the bank is considering further cost cuts.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)