Credit Suisse is at ‘critical moment’ as bank prepares for latest overhaul, CEO says

Credit Suisse | Representative Image

Credit Suisse Group AG’s Chief Executive Officer Ulrich Koerner said the bank is at a “critical moment” as it prepares for its latest overhaul, while stressing the bank’s strength.

In the second carefully-worded memo sent to reassure staff in as many weeks, Koerner told employees not to confuse the “day-to-day” stock price performance with the Swiss firm’s “strong capital base and liquidity position.” The shares are hovering near a record low.

Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability and put an end to a string of scandals.

While conceding that there is a lot of uncertainty and speculation both within and outside the bank, the CEO said he will be sending a regular update to staff until the results of its strategic review on Oct. 27, according to the memo, seen by Bloomberg and confirmed by a Credit Suisse spokesperson.

Koerner asked staff to remain disciplined and close to clients despite all the media attention the bank is receiving.