By Anshuman Daga and Oliver Hirt
SINGAPORE/ZURICH (Reuters) – Credit Suisse will maintain its strategic overhaul despite the abrupt departure of chairman Antonio Horta-Osório following an internal investigation into his personal conduct, including rule violations related to Covid-19, his successor said. in this Monday.
Horta-Osório leaves less than nine months after joining the bank to help it deal with the implosion of investment firm Archegos and the insolvency of British Greensill Capital. The executive left the institution at a time when Credit Suisse sought to recover from the departure of Chief Executive Tidjane Thiam, which took place in 2020 amid an espionage scandal.
The bank’s shares were down about 1.6% in mid-morning trading.
The Portuguese banker’s personal conduct was recently criticized after he violated Covid-19 quarantine rules twice, in November and December 2021.
“I regret that several of my personal actions have led to difficulties for the bank and compromised my ability to represent it internally and externally,” Horta-Osório said in a statement released by Credit Suisse on Monday.
Credit Suisse said Horta-Osorio resigned following an investigation commissioned by the board and that board member Axel Lehmann took over as chairman of the board with immediate effect. The bank did not give details about the investigation.
Two people familiar with the situation said Horta-Osório’s behavior, including his use of the bank’s private jets, was at the heart of the investigation. The two sources said that in addition to the pandemic-related violations, the executive directed a Credit Suisse jet to fly him to the Maldives on a return from a business trip in Asia.
A spokesperson for Horta-Osório said he does not speak to the press.
Lehmann, a Swiss who previously worked for rival UBS and spent nearly two decades at Zurich Insurance Group, said no course changes are planned for Credit Suisse as the bank tries to return to calmer waters.
Lehmann said customer business has remained excellent despite the latest turnaround and that no major management changes are underway. The executive added that Chief Executive Thomas Gottstein is “central to our ability to continue the transformation together.”
Analysts said that after Horta-Osório was found to have violated Covid-19 rules twice, it was inevitable that he would leave the bank, but that could make it even more difficult for Credit Suisse to recover.
Reeling from a disastrous year, Credit Suisse reported a 21% drop in last year’s third-quarter profit and warned of a loss in the last three months of 2021.
Credit Suisse shares are down 23% last year, while UBS shares are up 33% to a four-year high.
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