Connect with us

Hi, what are you looking for?

Stock

Credit Suisse board member Gottschling to exit after risk management debacle

Stock Markets1 hour ago (Apr 30, 2021 03:00AM ET)

(C) Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich

By John Miller

ZURICH (Reuters) – Credit Suisse (SIX:CSGN) board member and risk committee chairman Andreas Gottschling will not stand for re-election, the Swiss bank said on Friday, the latest head to roll among top leadership after the Greensill and Archegos debacles.

Gottschling is leaving after proxy adviser Glass Lewis and some of Credit Suisse’s large investors were opposed his re-election to the board at the shareholders meeting due to be held later on Friday.

They said he needed to be held accountable for the investments made by the bank that have imploded this year.

The annual shareholders meeting, due to start at 0830 GMT, will mark the arrival of former Lloyds Banking (NYSE:LYG) Chief Executive Antonio Horta-Osorio as new chairman, and the exit of Chairman Urs Rohner, whose tenure has been marred by several crises, including a $2.6 billion settlement over helping people evade U.S. taxes and an embarrassing corporate spying scandal that last year forced then-CEO Tidjane Thiam’s ouster.

Credit Suisse is now raising capital, has halted share buybacks, cut its dividend and revamped management after losing at least $4.7 billion from the collapse of family office Archegos and suspending funds linked to insolvent supply chain finance company Greensill.

“Andreas Gottschling has informed the Board that he will not stand for re-election at the Credit Suisse 2021 Annual General Meeting of Shareholders,” Credit Suisse said in a short statement.

David Herro, vice-chair of Harris Associates, which says it owns 10.25% of the bank’s stock, and the Ethos Foundation, which advises 225 Swiss pension funds and public utility foundations owning between 3%-5% of the company’s stock, wanted Gottschling to be removed at the upcoming shareholders meeting, according to media reports.

Chief Risk and Compliance Officer Lara Warner and investment banking head Brian Chin have already left the bank following the losses.

Ethos is also among investors managing $2.5 trillion who called for the bank to take a tougher stance on coal financing, amid concern its current policies are too lax, according to a letter seen by Reuters.

Norway’s oil fund, which at the end of 2020 owned 3.43% of Credit Suisse stock, also said it would vote against Gottschling’s re-election.

Credit Suisse board member Gottschling to exit after risk management debacle

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved