A sign above the entrance to the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, November 1, 2021.
Thi Mai Lien Nguyen | Bloomberg | Getty Images
Swiss Credit Its CEO has vowed to move forward with its risk management and compliance overhaul in light of a string of scandals, despite what he called a “challenging” environment.
The crisis-ridden Swiss lender will hold an investor deep dive event on Tuesday to set out its priorities and progress in the wealth management business as well as reforms in its risk, compliance, technology and operations operations.
Credit Suisse warned earlier this month It is expected to suffer losses in the second quarter due to pressure on its investment bank from the war in Ukraine and tightening of monetary policy.
This comes after several scams and mishaps at the bank in recent years. It reported a net loss for the first quarter of 2022 as it struggled with related litigation costs arcgos hedge fund collapse,
In view of the huge loss to the bank Meltdown of US hedge fund Archegos CapitalBecause it broke ties with the troubled family office.
Credit Suisse CEO Thomas Gottstein further said in a statement, “Despite the challenging market environment, we remain focused on the implementation of our strategic plan during the transition year 2022 and on strengthening our risk culture – importantly, While staying close to our customers.” Tuesday’s investor event.
“At the same time, we are continuing the digital transformation of the bank, which is the key to building a robust, scalable and agile organization that is fit for the future.”
In its presentation to investors, the bank will outline how the collapse of Arcagos exposed weaknesses in its risk management, where “results stability deviated from historical performance.” It also explained in detail how it has restructured its overall risk profile to reduce risk in high risk segments of the market.
The scandalous lawsuit prompted some shareholders to call for a change in leadership only two years after Gottstein took over from former CEO Tidgen Thiam, who resigned after a long detective saga,
Although, President Axel Lehmann told CNBC in May That CEO Thomas Gottstein has the full support of the board to continue with the “rebuilding” of the company.
Meanwhile on Monday Credit Suisse and a former employee found guilty by the Federal Criminal Court of Switzerland for failing to prevent money-laundering by an alleged Bulgarian cocaine trafficking gang between 2004 and 2008. The trial was the nation’s first criminal proceedings against one of its major banks.