New C Suisse strategy: 'They’ll have to deliver on that'

Tidjane Thiam

Tidjane Thiam, Credit Suisse’s new CEO, pledged to prioritize wealth management over investment banking and asked investors for $6bn of capital as he put his imprint on the bank.

Bloomberg News reports that while his multi-year plan, presented in London on Wednesday, contained few big surprises, the capital call and prospect of a lower dividend discouraged investors, who also questioned how Thiam will meet his goals. The shares fell that day.

'The market’s reaction is ‘yes, we like what you’re doing, but show us the money'', said Andrew Parry, the head of equities at Hermes Investment Management, in an interview with Bloomberg Television. 'They’ll have to deliver on that'.

Thiam, recruited in July to rebuild investor confidence, is seeking to improve returns squeezed by tougher capital demands and record-low interest rates.

To access the complete Bloomberg News article hit the link below:

Thiam `Reboot' Fails to Impress as Credit Suisse Taps Investors

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