Credit Suisse boss tossed overboard

Credit Suisse Group has sacked its CEO, Tidjane Thiam, after his position became untenable.

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”.

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”.

Recommended

The hidden cost of employee share schemes
Investment strategy

The hidden cost of employee share schemes

Paying employees in shares comes at a cost to investors – but it isn’t always easy to see how much, says Stephen Clapham.
26 Sep 2022
Sterling crashes to its lowest since 1985 after mini-Budget
Currencies

Sterling crashes to its lowest since 1985 after mini-Budget

The pound has fallen hard and is heading towards parity with the US dollar. Saloni Sardana explains why, and what it means for the UK, for markets and…
23 Sep 2022
Earn 3.7% from the best savings accounts
Savings

Earn 3.7% from the best savings accounts

With inflation topping 10%, your savings won't keep pace with the rising cost of living. But you can at least slow the rate at which your money is los…
23 Sep 2022
Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022