Credit Suisse was expected to announce Koerner as CEO, replacing Gottstein – sources said

July 26 (Reuters) – Credit Suisse Group AG ( CSGN.S ) is expected to announce Ulrich Koerner as its new chief executive, replacing Thomas Gottstein in a bid to bolster confidence in the bank, two sources familiar with the situation said. Tuesday.

Pressure has been mounting on Gottstein for months because of major scandals and losses during his two-year tenure that have hammered stocks and irked investors.

When Gottstein took the helm in 2020, he promised a “clean slate” for the bank, which was recovering from an internal espionage scandal that cost its predecessor Tidjane Thiam his job.

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But the problems have only escalated. In 2021, the bank disclosed a $5.5 billion loss from the dissolution of US investment firm Archegos and the collapse of $10 billion worth of supply chain finance assets. The incidents led to the ouster of management, investigations and a capital increase – followed by further losses and new lawsuits. read more

One of the sources said the bank was expected to announce the change in CEO on Wednesday along with its quarterly results.

Credit Suisse brought in Koerner in April 2021 to lead its newly spun-off asset management division following the collapse of the $10 billion supply chain finance funds linked to insolvent financier Greensill Capital.

Koerner returned to Credit Suisse from arch-rival UBS, where he most recently served as an advisor to the CEO from 2019 to 2020. He ran UBS Asset Management from 2014 to 2019. Koerner was previously a senior executive at Credit Suisse Financial Services, running Swiss operations. read more

Koerner, who previously worked for McKinsey, is considered a restructuring expert in Switzerland.

Credit Suisse declined to comment.

The Financial Times, which previously reported that Koerner may take over, also reported that Christian Meissner, head of the lender’s investment bank, plans to leave the group.

Meissner did not respond to requests for comment from Reuters

This spring, Credit Suisse chairman Axel Lehmann reiterated his support for Gottstein after Artisan Partners, the bank’s ninth-largest shareholder, publicly called for Gottstein’s replacement. read more

“I fully support him because he is good,” Lehmann said in a CNBC interview at the World Economic Forum meeting in Davos. He dismissed as “rumors and speculation” talk that Gottstein could be on his way out.

The WSJ previously reported that Gottstein could soon be replaced, days after Swiss newspaper SonntagsZeitung reported that the bank is considering further cost cuts. read more

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Reporting by Oliver Hirt in Zurich, Shivam Patel in Bengaluru and Elisa Martinuzzi in London; Additional writing by Megan Davies; Editing by Devika Syamnath and Richard Pullin

Our standards: Thomson Reuters Trust Principles.

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