In the years leading up to the financial crisis of 2008, Credit Suisse was one of the leading banks in the world. But in the aftermath of the crisis, the bank was forced to take billions of dollars in write-downs and losses. The bank’s share price fell sharply, and it was forced to raise billions of dollars in new capital.
In the years since the crisis, Credit Suisse has been trying to rebuild its business. But the bank has been hampered by a series of scandals and setbacks.
In 2015, the bank was fined $2.5 billion by U.S. and British regulators for helping its clients evade taxes. The scandal led to the resignation of Credit Suisse’s CEO, Brady Dougan.
In 2016, the bank agreed to pay $5.3 billion to settle U.S. charges that it had misled investors in the sale of mortgage-backed securities.
And in 2017, Credit Suisse was hit with a $135 million fine by U.S. regulators for failing to properly monitor its accounts for money laundering.
These scandals and setbacks have taken a toll on Credit Suisse’s business. The bank’s profits have fallen sharply in recent years, and its share price has lagged behind its rivals.
In 2018, Credit Suisse announced a major restructuring plan. The bank said it would focus on its wealth management business and cut costs. The bank also said it would exit some businesses, including its trading business.
The restructuring plan has yet to deliver results. In 2019, Credit Suisse reported a loss of $2.3 billion. The bank’s share price has fallen sharply this year, and its CEO, Tidjane Thiam, has come under pressure.
The pressure on Thiam intensified in December 2019, when Credit Suisse announced that it would take a $4.7 billion charge to write down the value of its U.S. business. The write-down was a major setback for the bank, and it led to calls for Thiam’s resignation.
On February 7, 2020, Thiam announced that he was stepping down as CEO of Credit Suisse. Thiam will be replaced by interim CEO Thomas Gottstein.
Gottstein will have his work cut out for him. Credit Suisse is facing challenges on multiple fronts, and it will take time for the bank to recover.