Ahead Of Investor Deep Dive Event, Credit Suisse Fined For Cocaine Money Laundering Case: Report

Credit Suisse Group AG CS will hold an Investor Deep Dive event today to inform investors about its key priorities and achievements across the Risk, Compliance & Technology & Operations functions, and the Wealth Management business.

“Despite the challenging market environment, we remain firmly focused on executing our strategic plan during the transition year 2022 and reinforcing our risk culture – crucially, while staying close to our clients,” said Credit Suisse CEO Thomas Gottstein.

“At the same time, we are continuing to drive the bank’s digital transformation, which is key to building a robust, scalable, and agile organization that is fit for the future,” he added.

In its presentation to investors, the bank outlined how the Archegos collapse highlighted weaknesses in its risk management, where “outcome substantially deviated from historical performance.” 

The presentation also detailed recalibrated aggregate risk profile to reduce exposure to higher-risk market areas. Credit Suisse also plans to achieve CHF 200 million in cost savings in 2022 and 2023, with a further 400 million francs in the medium-term.

CNBC writes that scandals have led some shareholders to call for a change in leadership only two years since Gottstein took over from former CEO Tidjane Thiam, who resigned after protracted spying.

However, Chairman Axel Lehmann told CNBC in May that CEO Thomas Gottstein has the board’s full backing to continue with the “rebuilding” of the company.

Separately, Credit Suisse was found guilty and fined for involvement in money laundering related to a Bulgarian cocaine trafficking gang between 2004 and 2008. It was fined around £1.7 million and ordered to pay £15 million to the Swiss government.

The bank denies wrongdoing and said it would appeal against the ruling.

Price Action: CS shares are up 1.34% at $6.03 during the premarket session on the last check Tuesday.