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Credit Suisse to replace CEO Dougan with Prudential's Thiam: FT
[ZURICH] Brady Dougan is set to quit as chief executive of Credit Suisse, a person familiar with the matter told Reuters. He will be replaced by Tidjane Thiam, who heads insurance group Prudential, the Financial Times reported.
Thiam is expected to be announced as a replacement for Mr Dougan by the London-based insurer, which reports its annual results at 0700 GMT on Tuesday, the FT said.
Mr Dougan has been under pressure to quit since last year when Credit Suisse reached a US$2.5 billion settlement with US authorities over charges that it helped Americans evade taxes by hiding their assets in secret bank accounts.
Although the Swiss bank's board backed the American chief executive over the deal, under which Credit Suisse pleaded guilty to criminal charges but held onto its New York licence and its legally protected client data, he came under pressure from politicians and the media in Switzerland.
Mr Dougan, who has been at Credit Suisse for a quarter of a century, has also been criticized for sticking with an investment banking strategy while cross-town Zurich rival UBS made a high-profile withdrawal from a business regarded by many in Switzerland as too risky following the financial crisis.
The Illinois native, one of only three global bank CEOs alongside JP Morgan's Jamie Dimon and Lloyd Blankfein at Goldman Sachs still in their jobs following the financial crisis, had previously endeared himself to Switzerland with a low-key style during more than seven years as Credit Suisse CEO.
Despite receiving a 90 million Swiss franc payday five years ago, Mr Dougan shuns displays of wealth, which plays well in Switzerland, where ostentation is frowned upon.
Mr Dougan initially won plaudits from investors for steering Switzerland's second-largest bank through the post-Lehman Brothers turmoil, cutting riskier trading activities and avoiding getting entangled in US subprime mortgages to the same degree as UBS, which took a state bailout in 2008.
Mr Dougan, who has been at the helm at Credit Suisse since 2007, recently saw a pay cut as part of a measure taken by the bank to tackle the surge in the Swiss Franc.
Prudential declined to comment.