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Credit Suisse boss sends memo to staff to reassure them about financial stability after stock price plunge
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The boss of banking giant Credit Suisse has sent a memo to staff to reassure them about financial stability following a fall in its share price.
Chief executive Ulrich Koerner said the bank had a “strong capital base and liquidity position.”
He urged employees not to confuse the “daily stock price” with the company’s underlying performance.
Reassurance: Chief executive Ulrich Koerner said the bank had a ‘strong capital base and liquidity position’
Credit Suisse shares have lost 25 percent of their value in the past three weeks.
The release of the memo comes less than a week after the bank issued a statement to investors that it is “well on track with its comprehensive strategic review.”
It said it aims to “create a more focused, flexible group” and will release details of a “transformation” plan on Oct. 27.
But Koerner said in the memo, first reported on Reuters and seen by The Mail on Sunday, that the bank is at a “critical moment”.
“I am aware that there is a lot of uncertainty and speculation both inside and outside the company.”
He said he wanted to make sure you hear directly from me during this challenging time. I will therefore send you regular updates until then.’
Koerner was promoted to the top position in July. The bank is looking to cut costs by more than $1 billion (£897 million) and sell parts of the company amid reports it could cut 5,000 jobs.
The restructuring plans are part of strenuous efforts to draw a line under a string of scandals linked to the Swiss lender.
It became embroiled in the 2021 collapse of controversial lender Greensill Capital and US hedge fund Archegos Capital. It also admitted last year to defrauding investors as part of the historic Mozambican ‘tuna bonds’ loan scandal, causing it to be fined more than than £350 million.
But the board is keen to prevent a further negative spiral that could affect their recovery plans.
Koerner said in the memo: “Undoubtedly there will be more commotion in the markets and in the press between now and the end of October. All I can tell you is to stay disciplined and stay as close as possible to your customers and colleagues.’
“I know it’s not easy to stay focused amid the many stories you read in the media, especially given the many factually incorrect statements being made.
“Having said that, I trust you will not confuse our day-to-day share price performance with the bank’s strong capital base and liquidity position.”