Credit Suisse Shares Fall After CEO Resigns Over A Spying Scandal

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Credit Suisse Shares Fall After CEO Resigns Over A Spying ScandalCredit Suisse shares fell 3 per cent Friday after CEO Tidjane Thiam resigned following months of mounting pressure over a spying scandal that has rocked the Swiss bank. Tidjane Thiam had the backing of quite a few shareholders but still couldn’t manage to salvage his job. The firm’s chairman, Urs Rohner, on the contrary isn’t expecting to get voted out of his job anytime soon. While talking to newspaper Schweiz am Wochenende after Thiam’s resignation, Rohner stated that shareholders had given him “clear responses” in support of Thiam’s exile.

Credit Suisse is Switzerland’s second-largest bank and has been hit significantly by the spying scandal. The firm is now hoping that the termination of its CEO could help it re-establish its lost reputation. As per the reports, a significant number of shareholders across the globe were in support of Thiam and not Rohner and that could well cause further problems for Credit Suisse. The firm though still stands strong on its claims of not being aware of the fact that it was spying on its former executives, the justification that is coming from Thiam as well. While the Credit Suisse board member have expressed their support to Rohner for completing his term that ends in April 2021, it remains to be seen whether the investors lend their support to him in the annual meeting later this year.

Talking about the change of roles, the exit of Thiam is not the only one in Credit Suisse’s attempt to reconstruct itself, a lot more are expected to follow soon. Thomas Gottstein, who was previously heading the company’s Swiss business, will now take over the responsibilities shouldered by the existing Tidjane Thiam. The company stated that it kept evaluating its options every two years and was hence able to elect Gottstein almost instantly.

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