While Koerner has insisted there is nothing he can do about the share price as he focuses on executing his strategy, the wild week is raising questions about how much longer the CEO has to persuade stakeholders. The market drama carries the risk that clients or counterparties might edge away, undermining the company as it’s overhauled — with potential ramifications for the industry at large.
Markets are threatening to deprive Ulrich Koerner of what he says he needs most to execute his major overhaul of Credit Suisse Group AG: Time.
A day after the chief executive officer pleaded for patience, shares of Swiss the lender suffered their worst slump ever and its credit derivatives blew out to levels reminiscent of the financial meltdown of 2008. By late Wednesday, the Swiss National Bank and regulator Finma stepped in, pledging to provide a liquidity backstop if needed.
