Young Jin Yee, Deputy Head of Wealth Management Business for Asia-Pacific di Credit Suisse he tendered his resignation. A spokesman for the Swiss bank confirmed this to Reuters.
Young's exit comes at a time when the Swiss bank is in the spotlight over concerns about its own ability to restructure the business, which is causing major shocks on the stock market and on the credit default swap (CDS) market.
The bank's wealth management is a key division within the restructuring plan. According to a staff note written by Benjamin Cavalli, the head of wealth management for Asia Pacific, Young has left to "pursue a better opportunity outside of Credit Suisse." Young had held the role since January and had been with the bank for nearly two decades.
On September 30, the prices of CDS contracts linked to the bank's debt soared and the title on the Zurich Stock Exchange collapsed. Today the stock on the Zurich stock exchange loses 2,40% from yesterday to 4,18 Swiss francs after having reached an all-time low of 3,638 Swiss francs last Monday and accumulating a loss of 58% of its value since the beginning of the year. with a market capitalization of 10,5 billion Swiss francs.
100 days requested by Koerner for a new strategy
According to some observers, since then the top management of Credit Suisse have been trying to reassure the most important clients and investors on the solidity of the capital and on the liquidity position of the Swiss institution.
Credit Suisse's new number one, Ulrich Koerner, asked investors for less than 100 days to develop a new relaunch strategy. Last Friday Koerner he reassured the staff that the bank has a "strong capital base and a strong liquidity position" and told employees it would send them regular updates until the company announces a new strategic plan on next October 27th.
The market expects a capital increase of 4 billion francs
Koerner, appointed in late July, has faced market speculation, banker exits and capital concerns as he tries to redefine a strategy after the financial disasters that involved the customer last year Archegos Capital Management for 5,1 billions of dollars.
A drastic cure will be required with asset sales and reduction of personnel which will allow for a reduction in costs from 19 billion in 2021 to 15,5 billion francs, but the market assumes a capital increase with which to finance the restructuring from 4 billion francs.
Despite the stock price crash and credit-default swaps soaring, it remains highly unlikely that Credit Suisse will default, according to the analyst at Swissquote, Ipek Ozkardeskaya, because the bank falls into the “too big to fail” category. Credit Suisse is more likely to become a takeover target or the Swiss government to step in to bail it out, Ozkardeskaya added.
