Credit Suisse seeks to ease jitters after turnaround speculation
TWO top executives at Credit Suisse Group AG sought to reassure employees following a week of intense speculation over the beleaguered Swiss bank’s turnaround plans.
In a carefully worded memo to staff, new chief executive officer Ulrich Koerner and Chairman Axel Lehmann tried to ease internal jitters, though they stopped short of offering new information on the company’s strategic future.
The memo comes after the firm denied a Reuters report Thursday (Sep 24) that it was considering exiting the US market. Its shares also slumped to a record low Friday, as investors signaled doubts over its strategy revamp and capital position.
“When we launched our strategic review, we committed to an ambitious timeline whilst also making it clear that we would carry out a rigorous and diligent evaluation of all options for Credit Suisse,” the memo stated. “We want to establish a clear path for the bank that will strengthen our franchise for the long term. This process requires time and a significant effort from many parts of the organization.”
A Credit Suisse representative confirmed the content of the memo.
The bank’s executives reiterated the timeline to unveil the strategic plan on Oct 27, when it announces quarterly earnings, adding that “it would be premature to comment on any potential outcomes before then.”
“Our priority continues to remain with our clients and providing them with first-class services, and on building back Credit Suisse’s reputation, restoring our financial performance and positioning the bank for a successful future, where we can realize its full potential,” the executives said. BLOOMBERG.
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