Share on Facebook Share on Twitter Share on Google+ The banking giant Credit Suisse is getting a boost from the Middle East. Both the government of Saudi Arabia and that of Qatar are willing to invest extra in the ailing second bank of Switzerland. After a series of scandals, it urgently needs money to stay afloat. The flip side of the coin is that investors from the Oil States together get about 20% to 25% of the institution. Due to a series of losses, striking shortcomings in risk management and changes in top management, Switzerland’s second largest bank is under pressure. Credit Suisse had to raise capital, stop share buybacks, reduce dividends and renew management after losing more than $ 5 billion in March 2021 due to Archegos ‘ bankruptcy. An espionage scandal forced then-CEO Tidjane Thiam to step down in 2020, and the Swiss financial regulator said Credit Suisse had misled her about the extent of its oversight. His successor Thomas Gottstein held out until July 2022, when Credit Suisse turned to restructuring expert Ulrich Koerner as CEO and launched a second strategic review within a year. Chairman Axel Lehmann took over from Antonio Horta-Osorio in January, who resigned less than nine months after taking office for violating quarantine rules during the COVID-19 pandemic. Horta-Osario’s predecessor, Urs Rohner, admitted in his resignation last year that the bank had disappointed customers and shareholders, and not for the first time. Credit Suisse’s losses have risen to almost 4 billion Swiss francs in the past three quarters alone, while financing costs have risen due to credit rating cuts. About the author: Damien KarlströmThe editor-in-chief worked for many years as a literary editor in Bern's leading publications. Over time, I decided to become the editor-in-chief. The main direction of materials is international relations and society.
