Concern: Credit Suisse
We are not sure what is happening with Credit Suisse.
2 years in a row of loss, 2016 caused primarily by a $5 billion fine (associated with the civil claims related to the issuance and underwriting of residential mortgage-backed securities). Though the claims began a decade ago, they underline once again the importance of compliant behavior and correct governance. Misbehavior and mismanagement have repercussions.
Credit Suisse’s answer to the current downturn is to save costs by cutting 6‘500 jobs. This is very short term thinking. Rather than try to shrink to greatness, Credit Suisse should up its Customer Service game. Not difficult as they are very low on the satisfaction scale and are haemorrhaging customers to other banks.
Update 29 April 2017
The rather surreal AGM has acted only to increase our concern.