Why Is Thomas Gottstein Stepping Down As CEO Of Credit Suisse? Announces Retirement From The Position
According to a report in the Wall Street Journal on Tuesday, Thomas Gottstein, CEO of the Swiss bank Credit Suisse Group AG (CSGN.S), is expected to announce his resignation as soon as Wednesday. The Zurich-based bank will soon announce Gottstein’s departure after a tenure in which he presided over several embarrassing mishaps and unsuccessful quarters. Read further to unlock the full story.
Why Is Thomas Gottstein Stepping Down As CEO Of Credit Suisse?
The Wall Street Journal reported on Tuesday that Thomas Gottstein, the CEO of the troubled investment bank Credit Suisse, is about to leave his position.
In 2020, Gottstein assumed leadership, a Credit Suisse veteran of two decades. He quickly found himself dealing with the fallout of the failure of two important clients: the Archegos family office and supply chain finance company Greensill.
Back at the time, he took over in early 2020 from predecessor Tidjane Thiam, who resigned from his position after a spying scandal.
JUST IN: Thomas Gottstein, CEO of Swiss bank Credit Suisse Group AG (CSGN.S) is set to announce his departure and the exit could be as soon as Wednesday, the Wall Street Journal reported on Tuesday #CreditSuisse pic.twitter.com/RZePvbSiG9
— BNN Newsroom (@BNNBreaking) July 26, 2022
The announcement of Gottstein stepping down from his position has circulated all over the Internet. A spokesperson for the bank, Candice Sun, chose not to respond to the report.
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Gottstein’s Retirement Announcement: Why Is He Departing, And To Where?
Although the exact date of Gottstein’s departure could not be predicted, the announcement could occur as soon as this Wednesday, when the bank releases its quarterly results.
An inquiry for comment from Reuters did not receive a response from Credit Suisse immediately. Additionally, the report stated that it was impossible to predict Gottstein’s replacement.
The executives of Credit Suisse are being snapped up by Wall Street banking titans Goldman Sachs, JPMorgan Chase, and Morgan Stanley as the troubled Swiss bank deals with dwindling revenues, accusations of money laundering, and the disregard for Russian sanctions.
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Axel Lehmann, the chairman of Credit Suisse, had reaffirmed his support for Gottstein in May amid concerns from investors about whether he was the best person to lead Switzerland’s second-largest bank.
In response, Lehmann stated, “I fully back him because he is good,” in an interview with broadcaster CNBC at the well-known World Economic Forum annual meeting in Davos, dismissing it as “rumors and speculations” talk that Gottstein could be on his way out.
Well, the declaration might be out in a matter of time; however, Thomas has not commented on where he will head after leaving the existing position.
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More on Credit Suisse; The Reason For Declining State by WSJ Report
On Wednesday, Credit Suisse will release its second-quarter earnings results. The company has already informed investors that it will experience a loss. The bank attributed the loss to the deteriorating economic conditions in Europe and Asia.
According to the Wall Street Journal, Investors have been demanding changes at the top of Credit Suisse due to poor risk management and a declining stock: the bank shares are down 46% this year.
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Although American banks reported mixed second-quarter results earlier this month, with sharp declines in investment-banking revenue, all six of the largest U.S. banks had profitable quarters. This is significantly worse than the 21% decline of the U.S-centric KBW Bank Index.
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