Credit Suisse CEO Quits After Espionage Scandal

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Chief Executive Officer of Credit Suisse Tijane Thiam decided to step down from his position on February 14th and head of the Swiss contingent, Thomas Gutstein, took the position in his place, after the espionage scandal that rocked the Swiss bank last year.

Internal investigations at Credit Suisse revealed that there is no evidence to condemn Thiam or prove that he was aware of the espionage activities of the former wealth manager of the bank, Iqbal Khan.

Meanwhile, investigations revealed the bank’s chief of operations, Pierre Olivier, that he had acted alone in directing efforts to establish whether or not Khan was spying on employees and clients, raising questions about how Thiam managed the bank.

Thiam said on Friday: “I had no knowledge of the spying activities inside the bank, and there is no doubt that this behavior disturbed (Credit Suisse).

The bank announced Friday the resignation of its chief executive. He will be replaced by Thomas Gottstein at the head of the group, splashed by a spy scandal.

Tidjane Thiam will leave office on February 14, after the presentation of the bank’s annual results, said the number two in the Swiss banking sector in a statement.

Tidjane Thiam, 57, stepped down after a board meeting on Thursday was held as the bank is splashed by a twist that started in September with spinning of a former high-ranking executive.

Born in 1964, Thomas Gottstein currently directs the bank’s activities for the Swiss market. With a doctorate in finance and accounting from the University of Zurich, this Swiss national began his career with the competing bank UBS, before joining Credit Suisse in 1999.”Tidjane has made a huge contribution to Credit Suisse since joining us in 2015,” said chairman of the board Urs Rohner, who was quoted in the press release as saying.

He was recently forced to defend himself on Instagram against allegations of the scandal. The bank supported him in his statements. An internal investigation also cleared him.

 

Bu gönderiyi Instagram’da gör

 

A personal note.

Tidjane Thiam (@tidjane.thiam)’in paylaştığı bir gönderi ()

But apparently there was a break between the chairman of the board of directors Urs Rohner and Thiam due to the shadowing affair. Several media reports. The Financial Times, for example, writes that Rohner became suspicious when he found that other managers had been spied on after they left the bank.

“I had no knowledge of shadowing two former colleagues. This undoubtedly harmed Credit Suisse and led to uncertainty and suffering. I regret what happened and it should never have happened, ”says Thiam in the bank’s latest statement.

Breach of trust between Rohner and Thiam

Some US and UK investors would have preferred to see Rohner leave. The major shareholders Harris Associates, Silchester International Investors and Eminence Capital had asked Rohner to support Thiam or to resign, Bloomberg reports. Instead of Thiam, the internal investigation by Credit Suisse accused two senior managers who were subordinate to him.

“I am proud of what the team has achieved during my time. We have successfully transformed Credit Suisse. Above all, we have further expanded our leading wealth management business, realigned our Global Markets unit and established tailor-made customer care in the regions, ”says Thiam.

The new CEO was the head of the successful Swiss business

Thomas Gottstein, the newly appointed Group CEO, has 30 years of banking experience, 20 of which he spent at Credit Suisse. He has held senior positions in investment banking and private banking. Since 2015 he has been the CEO of Credit Suisse  AG and member of the Group Executive Board responsible for the Swiss home market. Under his leadership, the contribution of Swiss business to the Group’s pre-tax profit increased from € 1.5 billion to around € 2 billion. With Gottstein, a strong successor has been found, says Rohner.

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Credit Suisse CEO Quits After Espionage Scandal - /10

Summary

Chief Executive Officer of Credit Suisse Tijan Thiam decided to step down from his position on February 14th and head of the Swiss contingent, Thomas Gutstein, took the position in his place, after the espionage scandal that rocked the Swiss bank last year.

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