Credit Suisse Lurches from Crisis to Crisis

Credit Suisse’s chief executive had a blunt message for his bank: it has an attitude to risk that needs to change. However, since Thomas Gottstein took charge of the firm a year ago, Credit Suisse has lurched from one crisis to another, with ineffective or insufficient risk management seen to have been in play in each instance.

So far this year, Credit Suisse has written down $450m on its investment in hedge fund York Capital and said the bank’s clients could lose up to $3bn from the frozen funds linked to collapsed specialist finance firm Greensill Capital. And the firm is being sued in London for its alleged role in bilking Mozambique’s taxpayers out of $200m in the so-called “$2bn tuna bond” scandal.