The Chairman of Credit Suisse Group António Horta-Osório, is stepping down immediately after an investigation involving breaches of Covid protocol.
Mr. Horta-Osório, who has been in the position for less than a year, reportedly broke quarantine rules in traveling on a London-to-Zurich flight in November and in attending the Wimbledon finals in July. Later, the board requested an investigation into Mr. Horta-Osorio’s conduct. On Sunday, he resigned.
“I regret that a number of my personal actions have led to difficulties for the bank and compromised my ability to represent the bank internally and externally,” Mr. Horta-Osório said in statement.
“I therefore believe that my resignation is in the interest of the bank and its stakeholders at this crucial time,” he added.
Mr. Horta-Osório will be succeeded by Axel Lehmann, a former senior executive at the Swiss investment bank UBS. Since last year, Mr. Lehmann has been the chairman and chief executive of the Credit Suisse risk committee. Before joining UBS, he worked nearly two decades for Zurich Insurance Group.
Mr. Horta-Osório, a former chief of the Lloyds Banking Group, took over as chairman in April. After the bank’s $5 billion loss, he was charged with turning things around. This was due to soured trades made by a small investment bank with Archegos Capital Management. It was only one in a string recent body blows. Credit Suisse will eliminate 69 New York-based employees following the Archegos fall. The bank plans to close its U.S. prime division by August 1.
“I have worked hard to return Credit Suisse to a successful course, and I am proud of what we have achieved together in my short time at the bank,” he said.
Credit Suisse shares have fallen 22 percent in the past year, giving it $28 billion market capitalization.
Lananh NguyenContributed reporting
Source: NY Times
