Credit Suisse is headquartered in London.
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LONDON – Credit Suisse has pledged to shake up its asset management business and suspend bonuses for several senior executives following the collapse of financial firm Greensill.
Credit Suisse announced on Thursday that Ulrich Körner will become the new CEO of its asset management business starting April 1. He will replace Eric Varvel, who will continue as CEO of Credit Suisse Holdings and chairman of the investment bank.
The Swiss investment bank is trying to contain the damage caused by the collapse of Greensill, a supply chain financing business with which it has links.
Greensill, who took office last week, claims on its website that it “unlocks finances so that the world can put them into operation” and, in 2020, issued funding of more than $ 143 billion to more than $ 10 million. customers.
The London-based firm, in which Japan’s SoftBank has invested about $ 1.5 billion, filed for bankruptcy after its insurance provider refused to renew $ 4.6 billion in insurance for its loans.
Credit Suisse has had several ties to Greensill, including $ 10 billion in funds. He said he was suspending Greensill-related funds on March 1.
This financing provided exposure to Greensill loans and was marketed to the bank’s customers as low-risk investments. Credit Suisse said some investors had threatened to take legal action and warned it could lose customers because of the problem.
The bank said its board is investigating the company’s ties to Greensill and may ask employees to repay bonuses that were previously issued to them.
“The payment and acquisition of variable compensation for a number of senior employees involved in these matters, up to and including members of the Executive Board, has been suspended as a measure to ensure that we can reconsider variable compensation for 2020 and apply malus or clawback, if applicable, “the bank said in its 2020 clearing report on Thursday.
He added: “The Clearing Committee shall closely monitor developments and shall determine, on the basis of the results of the investigation, any appropriate action to be taken.”
Credit Suisse said its asset management business – which hosted the controversial supply chain funds – it will now be separated from its international wealth management division.
Körner will report directly to the group’s CEO Thomas Gottstein and will also be a member of the executive board.
“Ulrich Körner is an excellent addition to our leadership team, consolidating his values and culture of performance,” Gottstein said in a statement.
“Ueli is a strong leader and strategic thinker with proven ability in business development and profitable growth in asset management as well as business transformation.”