Credit Suisse Group has ousted CEO Tidjane Thiam (pictured) in an attempt to “fix its reputation after a damaging spying scandal”, says Bloomberg.
While an internal probe absolved Thiam of responsibility for spying on an ex-employee, further spying incidents have now come to light, rattling Swiss regulators. Thiam’s replacement is Thomas Gottstein, a two-decade Credit Suisse veteran.
The board had little choice but to fire Thiam, says Liam Proud on Breakingviews. His position was “untenable”, given the role of his “long-time associate and chief operating officer” in the scandal. Thiam’s claims that he knew nothing were “not reassuring. At worst, [they] were unconvincing”. Nevertheless, the board now needs to explain its choice of Gottstein. His CV “is light in some of Credit Suisse’s most important growth areas, like US investment banking and Asian private banking”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Whatever the merits of Thiam’s dismissal, its hard to deny that he’s left Credit Suisse in a better position than when he took over, says The Economist.
Despite having to deal with legal issues stemming from the financial crisis, he’s managed to repair the bank’s balance sheet as well as reduce operating costs by around one-sixth in the past three years.
Most importantly, he’s shifted the bank away from “risky trading” towards “managing the wealth of the seriously rich”. As a result, assets under management at Credit Suisse have grown by CHF200bn to CHF1.5trn in the past five years. Overall, Gottstein “could do worse than follow his course”.
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Klarna postpones US IPO as Trump's tariffs rattle marketsBuy-now-pay-later lender Klarna has postponed its US initial public offering owing to the market turbulence. It is not alone, says Matthew Partridge
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
-
Buy-to-let returns fall 59% amid higher mortgage ratesBuy-to-let returns are slumping as the cost of borrowing spirals.
