Changes in Credit Suisse Group AG
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The new chairman of Credit Suisse António Horta-Osório has taken over some of the responsibilities of the Swiss bank over what he described as a seizure of power that has undermined the authority of Thomas Gottstein.
Horta-Osório, a former CEO of Lloyds Banking Group, took over the reins of Switzerland in April, recently. after the trouble of the twins about the Archegos Capital family office and an economist at Greensill Capital.
In its first 134 days, a Portuguese-British bank broker – who was honored in June for reinstating Lloyds after the financial crisis – established his authority at Credit Suisse by placing allies close to the central committee. He has expanded his office and is taking part in decision-making, while trying to set up a real bank, according to people who are familiar with the matter.
This has led to discussions among bank managers over Gottstein’s role as CEO. It has also helped whisper in Zurich that Horta-Osório has plans to take over as CEO, which some bank officials actually reject.
“Right now [Horta-Osório] he is trying to mentor and train her, ”said a person who knows their relationship.
“There is a belief that Thomas was thrown into it without any training or training and may be able to do the job with a plan. There is a desire to give him a chance, but there is no guarantee that it will happen.”
In the meantime the changes have been made with the establishment of a “crisis committee” set up to address the problems that have arisen from Archegos and Greensill, but they are now acting as “bank nerves”, according to a number of experts.
The TCC, as it is known internally, consists of Horta-Osório, Richard Meddings, chairman of the risk management committee, and Christian Gellerstad, chairman of the finance committee.
“The three met Thomas [Gottstein] and David [Mathers, chief financial officer] and other judges on a regular basis, “said a man who was in charge of the project.” Antonio orders Thomas to these meetings. That’s his decision. “
Prior to the arrival of Horta-Osório TCC and was established in collaboration with the Swiss supervisor, Finma, as part of the response The deceptions of Archegos and Greensill.
Since then Horta-Osório has also taken on the task of overseeing the movement’s movement. Recently in August it met every week, but now it meets every two weeks.
At least two of the Credit Suisse fund representatives said they support Horta-Osório’s courage.
The manager of the Swiss bank near Horta-Osório said his next goal was to restore the big team.
“Another problem with Credit Suisse in recent years is that the members of the group did not have enough banking skills,” he said. “Antonio responded immediately and is now looking for supervisors – he doesn’t have much knowledge of banking.”
In July, Credit Suisse published a report by Paul Weiss on its handling of the case Archegos fall. In detail, it described the shortcomings that led to the bank’s loss of $ 5.5bn, the largest in its 165-year history.
TCC is overseeing a similar study in its relationship with Greensill, which resulted in the $ 10bn removal.
A lot of work has been done with research that reveals the same complexities that the Archegos report did, including the permissive customer relationships and culture of risky care.
The results of this survey are expected to be explained by the results of the third quarter on November 4, although a full report is not expected to be released.
Credit Suisse declined to comment.