Credit Suisse CEO to step down from embattled investment bank, WSJ says

https://www.cnbc.com/quotes/CS”>Credit Suisse CEO Thomas Gottstein is about to step down from the embattled investment bank, the Wall Street Journal reported on Tuesday.

The Zurich-based bank will soon announce the departure of Gottstein after a tenure that included a series of embarrassing mishaps and several unprofitable quarters, according to the Journal. His replacement couldn’t be determined, the newspaper said.

Candice Sun, a spokesperson for the bank, declined to comment on the report.

Credit Suisse is set to report second-quarter results on Wednesday, and it has already warned investors that it will lose money. The bank blamed worsening economic conditions in Europe and Asia for the loss.

Gottstein, a two-decade https://www.credit-suisse.com/about-us/en/our-company/our-management/executive-board/thomas-p-gottstein.html” target=”_blank” rel=”noopener”>veteran of Credit Suisse, took over in early 2020 from predecessor Tidjane Thiam, who https://www.cnbc.com/2020/02/07/tidjane-thiam-to-step-down-as-credit-suisse-ceo-on-feb-14.html”>resigned after a spying scandal. Gottstein was soon wrestling with the costly fallout from the https://www.cnbc.com/2022/06/28/credit-suisse-to-overhaul-its-risk-management-after-archegos-and-other-scandals.html”>meltdown of two key clients: the https://www.cnbc.com/2021/03/29/the-archegos-blowup-and-its-ripple-effect-across-markets.html”>Archegos family office and supply-chain finance firm Greensill.

Investors have been calling for change atop Credit Suisse amid the risk management failures and a sagging stock : Shares of the bank are down 46% this year.

That’s considerably worse than the 21% decline of the U.S.-centric https://www.cnbc.com/quotes/.BKX”>KBW Bank Index; American banks reported mixed second-quarter results earlier this month, with sharp declines in investment-banking revenue, but all six of the biggest U.S. banks had https://www.cnbc.com/2022/07/19/what-recession-evercore-isi-asks-after-bank-earnings-show-consumer-strength.html”>profitable quarters.