Credit Suisse CEO Gottstein Vows to Restore Calm After Archegos
(Bloomberg) -- Credit Suisse Group AG Chief Executive Officer Thomas Gottstein pledged to restore calm at the Swiss bank after the Archegos Capital Management scandal caused a $5.5 billion hit and further damaged its reputation.
Speaking at the virtual annual general meeting on Friday, Gottstein said that the recent developments had “left their mark” on him, and that with the new chairman and board, he would seek “to steer Credit Suisse back into calmer waters.”
Gottstein is battling to rescue his short tenure as chief executive officer after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital scandal, when it was forced to suspend investment funds. While seeking to placate investors hurt by the losses, he also now faces the fresh challenge of navigating enforcement proceedings announced by Swiss regulator Finma.
“I have been at Credit Suisse for 22 years, through many ups and downs,” Gottstein said. “I am self-critical with regard to the recent developments, which have left their mark on me.”
The two scandals have left the CEO standing while many once powerful members of his management board had to leave. Gone are investment banking head Brian Chin and Chief Risk Officer Lara Warner, along with a raft of other senior executives including equities head Paul Galietto and the co-heads of the prime brokerage business. Andreas Gottschling, head of the risk committee on the supervisory board, is also leaving.
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