Credit Suisse Bankers Grill CEO Thomas Gottstein
Credit Suisse chief executive Thomas Gottstein was reportedly grilled by his own bankers over the recent Archegos collapse that led to $4.7 billion in losses.
Dozens of managing directors at Credit Suisse grilled CEO Thomas Gottstein over the bank’s exposure, risk profile and relatively greater losses compared to rivals, according to «Bloomberg» report citing unnamed sources.
In response, Gottstein allegedly deferred to incoming chairman Antonio Horta-Osorio, highlighting his arrival later this month as an opportunity to reassess the bank’s strategy.
Board: Increasing Control
According to the report, Credit Suisse’s board of directors is increasingly taking control after the downfall of Archegos.
The replacement of chief risk officer Lara Warner and investment banking chief Brian Chin, for example, were decisions made by the board rather than Gottstein.
Although Gottstein previously noted that new chairman Horta-Osorio would increase scrutiny on the investment banking unit, the report added that the board is pushing for a broader review of the bank’s overall strategy rather than the individually troubled units.
