Credit Suisse CEO, Blindsided by Risk Buildup, Cuts Jobs
- Thiam says trading actions were `completely unacceptable'
- Bank announced additional 2,000 job cuts at securities unit
Credit Suisse CEO: There Needs to Be a Cultural Change
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Credit Suisse Group AG Chief Executive Officer Tidjane Thiam, who said he was blindsided by a buildup of illiquid trading positions that will probably spark a first-quarter loss, pledged to make deeper cost cuts.
The global markets unit, which houses securities trading, will lose money in the quarter as revenue drops as much as 45 percent from a year earlier, Credit Suisse said on Wednesday. Holdings of distressed debts, leveraged loans and securitized products triggered $258 million of writedowns in the period, with the CEO saying some of the positions were built up without his knowledge.