‘Focus on facts and reinforce bank's strengths’ Credit Suisse CEO tells staffs
1 min read 16 Mar 2023, 02:02 PM ISTThe embattled chief executive officer of Credit Suisse Group AG told his staff to focus on facts as he pledged to rapidly move ahead with a plan to streamline operations
PremiumAs the market continues to stay apprehensive about the banking economy condition due to Credit Suisse turmoil, the Zurich-based banking firm's CEO Ulrich Koerner has asked its employees to focus on facts and reinforce the strengths of banks.
In a memo to staff, Ulrich Koerner, said the bank would continue to focus on the transformation Credit Suisse from a position of strength, reported Bloomberg. In his memo he also mentioned about the improved liquidity coverage ratio of the bank and its decent capital raising.
“Effective communication is key to ensure that our clients and external stakeholders understand the strengths of the bank, our strategy and the accelerated progress we are making to create the new Credit Suisse," he said in his memo on Thursday.
He also said that the whole week had been tough for the banking sector as things started getting worse after the back-to-back collapse of two US banks. The delay in Credit Suisse's annual report had also “led to further attention on Credit Suisse."
Notably, the memo to boost the morale of the company staff came a day after the asset management company received backing from the Swiss National Bank in the form of $54 billion investment. The Swiss National Bank will also repurchase debt of 3 billion francs of debt.
Credit Suisse's shares tanked by 30% on share markets after its top investor Saudi National Bank comment on its investments on Wednesday. The company bonds also fell to levels that signal its deep financial distress.
Worries about Credit Suisse's financial health have roiled global markets from a long time. However, the latest comment took the global market to haywire. The situation also alarmed regulators across Europe and the US and prompted some firms to reassess their exposure to the bank.
The lost of confidence on Credit Suisse also reflected in the stock market and global currency trade, where Swiss Franc declined by more than 1% against the US dollar on spot trade on Thursday. The overall ruckus also forced the Saudi National Bank chairman Ammar Al Khudairy, to reassure about the stable situation of Credit Suisse.
