There had been “consequences” for some employees.
Credit Suisse CEO Tidjane Thiam said that some of the firm’s traders had ramped up holdings of distressed debt and other illiquid positions without many senior leaders’ knowledge, helping lead to a first-quarter loss in the markets business.
“This wasn’t clear to me, it wasn’t clear to my CFO and to many people inside the bank” when the firm laid out a strategy in October, Thiam, 53, said Wednesday in a Bloomberg Television interview. “There needs to be a cultural change because it’s completely unacceptable,” adding that there had been “consequences” for some employees.
Bloomberg News reports that the bank’s holdings of distressed debts, leveraged loans and securitized products, including collateralized loan obligations, triggered $258m of writedowns this year through March 11, after $495m of losses in the fourth quarter, according to a presentation.
The bank said it sold off a quarter of its distressed holdings and more than half of its CLO positions and is exiting some of those businesses.
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