The 'ugly ducklings' bite back.
The New York Times reports that he used forceful language in doing so. He has referred to once core businesses — such as trading in distressed bonds and derivatives — as 'ugly ducklings'. He has suggested publicly that traders increased their investments in risky debt without his knowledge.
Instead, Thiam said, the firm should dedicate itself to cultivating billionaires in China, Indonesia and Africa. The message: The future for the company is in managing the wealth of others.
One year in, Credit Suisse stock is down 50%. And the investment bank is in open revolt.
For decades, the bank has been dominated, both culturally and financially, by a richly paid banking elite. These deal makers in New York and London are now furious at Thiam, not just for cutting their pay but also because they resent his blaming them for the $6 billion in losses that the firm has suffered on his watch.
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