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Credit Suisse names a new Chief Risk Officer

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David Wildermuth has been appointed as Credit Suisse new chief risk officer. The Goldman Sachs alumnus will also join the executive committee, the two-veiled bank announced Tuesday.

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The new head will take over by the end of February 2022. The former Goldman Sachs employee served on a variety of risk-related committees. He will report directly to Thomas Gottstein, Managing Director.

According to Gottstein, Wildermuth’s appointment reflects the bank’s commitment to risk management in light of his 34 years in financial services. A half-year earnings call for the company is scheduled two days after this announcement.

The new director will succeed Joachim Oechslin, who will serve as interim director until Wilddermuth takes up the position. Mr. Oechslin will then concentrate on his role as CEO advisor.

Focus on risk management
New President Antonio Horta-Osorio recently emphasized the importance of risk management. After failing with both Archegos, a hedge fund, and Greensill, a factoring company, the management had warned in the spring that it would reduce risk-taking in its investment bank, particularly in the prime brokerage business with hedge funds.

This is a challenging time for the bank, which has been singled out by Moody’s due to a higher than expected risk appetite, a deficit in internal risk awareness, and control failures. In mid-July, the New York-based rating agency downgraded some of Credit Suisse’s bonds.

Moody’s also warned that these cases may expose the bank to legal action by clients who lost money in the SCFF and Archegos funds. Further losses cannot be ruled out in the second half of the year.

The downgrades follow the Greensill and Archegos cases, which resulted in heavy losses for the bank. In the first quarter, the bank posted a pretax loss of 757 million francs after posting a positive result of 1.2 billion a year earlier.

At around 9:45 a.m. on the Swiss stock exchange, Credit Suisse shares were down a sharp 1.3% to 9.3 francs, while the leading SMI index was down 0.87%.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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