Credit Suisse Insists “No Changes Occured” Since CEO Gottstein’s Endorsement by the Chairman

Following the recent news on CEO Thomas Gottstein’s endorsement by Axel Lehmann, the Chairman of Credit Suisse Group, a statement from the bank insists that no changes have occurred. This comes after reports on Bloomberg News claiming that the bank had plans for his replacement.

In the report, the newsroom speculated changes in the bank’s leadership later in the year, stating that talks were underway to remove Gottstein from his current position.

Credit Suisse has since released a statement, clearing its name from the speculations and refraining from commenting on the “rumours.” In addition to this, the report stated that “The Chairman clearly endorsed Thomas Gottstein. Nothing has changed in this regard.”

Since Gottstein assumed the bank’s CEO position in 2020, he has led it into several scandals, among them the regulatory non-compliance for breaching the privacy of its executives after spying on them. This scandal led two major clients, Archegos and Greensill, to terminate their relations with the bank. It also prompted key staff to resign.

Despite the board’s continued publicised support for the CEO, Bloomberg reported that some members doubt his ability to manage the situation at the bank.

According to critics, Thomas Gottstein had a chance to apply better solutions for the problems that sparked the Greensill and Archegos meltdown that caused a loss of $5.5 billion.

Speaking to Swiss newspaper NZZ, the chairman of Credit Suisse, Axel Lehmann, confirmed his support for Gottstein. He added that the strategies from the bank’s board gained support from up to 10 essential investors.

Before Gottstein’s appointment, Tidjane Thiam was the former CEO who lost his position after the spying scandal. Antonio Horta-Osorio, the bank’s former chairman, also made an abrupt exit from his position in January 2022 after an investigation into his misconduct. Axel Lehmann filled the position.

The reputation of Credit Suisse Group remains questionable as investors maintain their doubts about the right decisions to make following the numerous scandals. The bank has denied its involvement in the listed issues, while the employees maintain their position in refusing to take responsibility for the issues in which they are mentioned.