Staff of Reuters 3 minutes Read (Reuters) – Zurich (Reuters) – Chairman Antonio Horta-Osorio said in his first interview since taking over at Credit Suisse that the bank plans to settle on a new strategy before the end of the year. FILE PHOTO: On October 28, 2020, the logo of Swiss bank Credit Suisse is visible at a branch office in Bern, Switzerland. REUTERS/File Photo/Arnd Wiegmann Following the collapse of $10 billion in funds backed by insolvent supply chain finance firm Greensill Capital, Credit Suisse’s top management is under pressure to come up with an overhaul plan after losing more than $5 billion in a rush to unwind trades by family office Archegos. Horta-Osorio, a former Lloyds Chief Executive, took over the post in late April, in the midst of the crises. Horta-Osorio described his first seven weeks on the job as “intense,” during which he visited with staff, Swiss politicians, and Swiss, US, and British regulators. He said the bank needed a realignment to address short-term difficulties while also positioning it for the long term. In an interview with the Swiss newspaper Neue Zuercher Zeitung published on Thursday, he added, “I have a clear idea of the course the bank must take.” “The question for me isn’t, “What do we need to do to make sure it works this time?” but rather, “What do we need to do to make sure it works this time?” ‘Why isn’t the bank progressing, despite having a superb collection of wealth management clients in Switzerland, Europe, and high-growth Asia?’ is a better question “He went on to say that serving entrepreneurs and wealthy families was the bank’s main strength. “We need to come to an agreement on how we can best service these customers and where we can be most competitive – and what that means for the bank as a whole,” he said. The bank would need not only the proper strategic direction, but also “the right people in the right position” to be successful, he stressed. Horta-Osorio compared the 165-year-old lender to a racecar going on a highway with its wheels on the wrong side of the road, describing the recent mistakes as unacceptable, and vowed no quick remedies, saying cultural reforms take time. Executives are concerned that the long-standing Swiss banking, which has been weakened by scandals, may be challenged by investors who want it broken up, or that its declining stock market value would make it a target for a foreign hostile acquisition, according to Reuters. As it searches for ways to tighten controls and enhance operations, it is considering centralizing the management of its bankers to the world’s wealthiest, according to Reuters. According to sources at the time, some executives considered actions such as spinning off its local Swiss bank to prepare the rest of the business for a merger, trimming back investment banking, or selling its asset management division. When asked about the investment bank’s future, Horta-Osorio said it was too early to predict the conclusion of the board’s talks. He explained, “We’re in the early stages of a new strategic positioning.” Brenna Hughes Neghaiwi contributed reporting, and Nick Zieminski edited the piece./n
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