Yahoo Finance Investors urged to oust Credit Suisse risk chief over Archegos and Greensill affairs
Investors in scandal-hit Credit Suisse (CSGN.SW) are being urged to oust the head of the lender's risk committee in protest at the string of recent blunders that have sent the bank's share price plunging.
Glass Lewis, a shareholder advisory group, has issued a notice to Credit Suisse investors urging them to vote against the re-election of Andreas Gottschling.
Gottschling has sat on the bank's board since 2017 and chairs Credit Suisse's risk committee, as well as sitting on its governance and audit committees.
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Glass Lewis' call to oust Gottschling comes after a string of risk management failures at the bank. Credit Suisse failed to spot problems at Greensill, a major counter-party that went bust earlier this year. The bank also lost $4.7bn after New York family office Archegos Capital collapsed last month. The bank has been left notably worse off than other lenders who dealt with Archegos. Shares in the bank have crashed by a fifth over the last month.
"Credit Suisse is subject to public scrutiny on multiple fronts after the recent collapse of the Greensill and Archegos funds, with billions in losses stemming from the transactions," Glass Lewis said in its report.
Besides Archegos and Greensill, the advisory group called out historic issues with spying on executives and the failure to spot a rogue trader who is now serving prison time. The advisory group cited these incidents as evidence of ethics and oversight issues at the bank.
Credit Suisse declined to comment.
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The bank's chief risk officer and head of the investment bank have both left in the wake of the recent twin scandals. Executive bonuses have also been scrapped.
Credit Suisse recently launched twin inquiries into its handling of Archegos and Greensill. Chief executive Thomas Gottstein has promised to "learn lessons" from the affairs and admitted that recent performance has been "unacceptable".
Credit Suisse will hold its annual general meeting of shareholder on 30 April in Zurich.
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