Credit Suisse boss sends note to staff reassuring them of his financial stability after share price plunge
The boss of banking giant Credit Suisse has sent a note to his staff reassuring them of his financial stability after a drop in his share price.
Chief executive Ulrich Koerner said the bank had a “strong capital base and liquidity position”.
He urged employees not to confuse “day-to-day share price” with the company’s underlying performance.
Reassurance: Chief Executive Ulrich Koerner said the bank has a “strong capital base and liquidity position”
Credit Suisse shares have lost 25% of their value in the past three weeks.
The emergence of the memo comes less than a week after the bank issued a statement to investors that it is “on track with its comprehensive strategic review”.
He said he aims to “create a more focused and agile group” and will release details of a “transformation” plan on October 27.
But Koerner said in the memo, first reported on Reuters and seen by The Mail on Sunday, that the bank is at a “critical juncture”.
“I am aware that there is a lot of uncertainty and speculation both outside and inside the company.”
He said he wanted to “make sure you hear from me directly during this difficult time.” So I will send you all a regular update until then”.
Koerner was promoted to the top job in July. The bank is aiming to cut costs by more than $1bn (£897m) and sell parts of the business amid reports it could cut 5,000 jobs.
The restructuring plans are part of strenuous efforts to draw a line under a series of scandals linked to the Swiss lender.
He was implicated in the collapse of controversial lender Greensill Capital and US hedge fund Archegos Capital in 2021. He also admitted last year that he defrauded investors in the landmark ‘thon bond’ lending scandal of Mozambique, leaving him with a fine of over £350m.
But the board is keen to push back a new negative spiral that could affect its recovery plans.
Koerner said in the memo, “There’s no doubt there will be more noise in the markets and in the press by the end of October.” All I can tell you is to stay disciplined and stay as close as ever to your clients and colleagues.
“I know it’s not easy to stay focused amongst the many stories you read in the media – especially given the many factually inaccurate statements being made.
“Having said that, I hope you don’t confuse our daily share price performance with the bank’s strong capital base and liquidity position.”