CS boss cleans questioners at financial conference
“Don’t answer stupid questions”
The big bank Credit Suisse is under pressure, especially CEO Thomas Gottstein. At an investor conference on Thursday, he also had to put up with questions regarding takeover speculation, which he answered harshly.
Published: 9:31 am
|
Updated: 09:54 AM
Goldman Sachs investor conference, yesterday in Rome, Italy: Credit Suisse boss Thomas Gottstein (58) is asked regarding the profit warning that the big bank issued this week. CS made a loss in the second quarter, as in the two previous quarters. Investors apparently asked one question too many regarding the takeover rumors regarding his bank, which flared up on Wednesday.
“We never comment on market rumors,” the Credit Suisse boss replies when asked regarding the takeover speculation by the US financial group State Street. Barsch adds Gottstein: His father had already taught him that one should “not answer stupid questions”.
The nerves in the CS boardroom are obviously on edge: the financial media are wondering how much longer Gottstein can hold his post, then the series of losses and now the takeover rumors that the financial blog “Inside Paradeplatz” fueled on Wednesday followingnoon.
Citing a source, he wrote that State Street was considering a takeover bid for the ailing second largest Swiss bank behind UBS and was offering 9 francs per CS share. As a result, the CS share price, which plummeted to CHF 6.20 due to the loss warning, shot up to more than CHF 7 at times.
State Street denies takeover speculation
In fact, there is probably nothing to the speculation regarding a billion-dollar deal by State Street. “The ongoing market rumors are completely unfounded,” said the financial group in a statement, according to the Bloomberg agency. “While it has long been our policy not to comment on such speculation, we believe that a response to these reports is warranted in this case,” it said. The focus is on the ongoing billion-dollar takeover of Brown Brothers Harriman’s fund services business.
This denial dealt the CS share another blow: the share fell and was quoted at 6.30 francs on Friday morning following the stock market opened.
In the market among analysts, these takeover rumors are viewed with skepticism. Rather, it means that CS must first solve its problems and win back the trust of stakeholders. Gottstein himself calls the current year a “year of transition”. While its CS investment bank is now less capital intensive, it is also less diversified than the equivalent divisions of many of its competitors. Gottstein: “We are therefore also experiencing higher fluctuations.”
Gottstein was also convinced that CS had now significantly strengthened its risk culture. The big bank was badly shaken last year by the debacles surrounding the multi-billion dollar collapse of the Archegos hedge fund and the liquidation of the Greensill fund. (euros/SDA)
