Credit Suisse appoints new chief to help mend the struggling bank

Credit Suisse Group announced this week that it has appointed a new chief executive officer and introduced Ulrich Koerner. He has been the bank’s asset management boss and has now been tasked to help improve the company as its losses continue to pile up.

Koerner is expected to implement a new strategy for the recovery of the investment bank, which has been struggling due to a series of scandals and mounting losses that now amounts to $1.6 billion. As per Reuters, Credit Suisse is calling this year - a "transition" period - as it changes.

Its leader and carry out its restructuring plan directed at cutting back risk-taking in investment banking as well as bolstering wealth management.

The appointment of the new CEO and reorganization are also part of the efforts to quash the speculations that Credit Suisse could either be put up for sale or broken up. The strategic review was revealed by the bank Wednesday, July 27, and this is already it's second in less than a year. The review will assess all the options for its securitized products business so the bank can attract third-party capital while maintaining its adherence to asset management.

“I am delighted to welcome Ueli as our new Group CEO, to oversee this comprehensive strategic review at a pivotal moment for Credit Suisse,” Credit Suisse’s chairman, Axel P. Lehmann, said in a press release. “With his profound industry knowledge and impressive track record, Ueli will drive our strategic and operational transformation, building on existing strengths and accelerating growth in key business areas.”

Ulrich Koerner will be replacing Thomas Gottstein as the company’s chief, and his takeover is taking effect on Aug. 1. The outgoing CEO faced a tumultuous two years while leading Credit Suisse, and his tenure will now be punctuated with heavy losses.

In any case, Lehmann also thanked Thomas for his service through the release. “I would like to thank Thomas for his commitment to Credit Suisse over more than two decades and in particular as Group CEO,” he said.

Finally, the chairman mentioned that Thomas has made a big contribution to the company "and always served our clients in Switzerland and beyond with integrity and entrepreneurial spirit. I wish him all the best in his future endeavors.”