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Credit Suisse crisis worst yet for banking veteran Horta-Osorio


5 Min Read
ZURICH (Reuters) -Credit Suisse’s new chairman Antonio Horta-Osorio said he sees the scale of problems facing Switzerland’s second-largest bank as representing his biggest challenge yet.
FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland March 24, 2021. REUTERS/Arnd Wiegmann/File Photo
Horta-Osorio, who was approved by Credit Suisse shareholders as chairman on Friday, said he intends to look at the bank’s risk management and culture in the wake of two major crises, as well as reviewing the bank’s strategic options.
“Over three and a half decades, I have personally worked at and led several banks in different countries and have lived through many crises,” the former Lloyds chief executive said during Credit Suisse’s webcast annual general meeting. ....

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Breakingviews - Credit Suisse bonus cuts are a necessary gamble


Breakingviews
3 Min Read
The logo of Swiss bank Credit Suisse is seen at a branch in Winterthur, Switzerland, November 2, 2017.
LONDON (Reuters Breakingviews) - Investment bank bonuses rarely act as the first line of defence. Many lenders continued to make generous payouts in 2009, even though taxpayers had just bailed them out. Credit Suisse Chief Executive Thomas Gottstein may take a different tack out of necessity. It could serve as an overdue test of the market for bank talent.
The Swiss bank set aside less than usual for bonuses in the first quarter, the Financial Times reported on Monday. That helped add about $600 million to its pre-tax profit, buffering the near-$5 billion hit from the collapse of hedge fund Archegos. Roaring markets and a boom in special purpose acquisition companies also contributed. As a result, Credit Suisse’s first-quarter loss will be less than $1 billion. ....

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