- Credit Suisse has seen a substantial fall to grass from grace.
- The company has experienced multiple crises.
- Will the new CEO save the bank?
Credit Suisse (SWX: CSGN) saw its stock price gain by over 2% in Switzerland. That came after the besieged bank introduced a new Chief Executive Officer. Meanwhile, its shares maintained massive bearish biases over the last few months, with the company enduring several crises. It has declined by more than 65% from 2021’s highest level, deteriorating its overall market capitalization to approximately $16 billion.
The Foulest Bank Stock
Credit Suisse stock witnessed massive bearishness within the last few months. The company endured colossal downtrends while dealing with many plagues. For instance, it faced racism accusations after ousting Tidjane Thiam as CEO in 2020.
Also, the company suffered during Bill Hwang’s implosion in 2021. The event saw the firm losing more than $5 billion as other Wall Street banks recorded minor losses following the crisis. Furthermore, Credit Suisse recorded losses due to the Greensill implosion. The bank had prolonged credits to the Softbank-supported firm. The latest report shows the bank confirming the event will cost clients more than $291 million.
Credit Suisse endured a reputation catastrophe when Horta Osorio, its chairman, resigned for violating COVID rules. He also faced extravagancy indictments for using a corporate jet. Recently Credit Suisse paid $22.6M for the Mozambique tuna bonds disaster. Also, it had encountered accusations of funding criminals.
Credit Suisse saw its stock price surging in Switzerland after the firm selected Ulrich Korner as the new CEO, replacing Thomas Gottstein, who has led the company since 2020. Experts trust the new Chief Executive can help the firm solve its many challenges. Credit Suisse published a 1.7 billion in a pre-tax loss for 2022 first half. Meanwhile, its revenue plunged by 36% compared to 2021’s similar period.
CSGN Price Prediction
The 24hr chart shows Credit Suisse stock maintained enormous bearish trends over the last few months. The decline had it breaching the support at $6.44, March 2020’s lowest mark. The shares stood beneath the 25- and 50-day MA, whereas the RSI (Relative Strength Index) moved briefly beneath the 50-neutral. Thus, CSGN will likely extend its downside as investors contemplate the firm’s crises and strategies by the new executive.
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