Last year Tidjane Thiam took over as chief executive of Swiss banking giant Credit Suisse. His mission? To breathe new life into the share price with a convincing strategy – just as he did at British insurer Prudential.
But so far there have only been setbacks. The strategy he announced last October disappointed markets – and a fourth quarter loss of more than 5.8 billion Swiss francs, or about $5.95 billion, has horrified many. Since October, Credit Suisse stock has fallen some 40 percent.
Now Mr. Thiam is trying again. Instead of cutting net costs by 2 billion Swiss francs by 2018, he aims to chop 3 billion. And 2,000 more jobs will be eliminated, raising the total to 6,000.
Again, most of the austerity measures will fall on the investment banking division. Last October Mr. Thiam announced that the balance should contain $83 billion to $85 billion in risk-weighted assets. Now the goal is down to $60 billion.