Credit Suisse replaces asset management head after Greensill collapse
Credit Suisse has replaced the chief executive of its asset management business and announced plans to separate the division that has faced scrutiny over its Greensill-backed funds.
The Swiss bank announced the appointment of Ulrich Korner as chief executive of the asset management business who will report directly to the bank’s chief executive Thomas Gottstein.
Previously the division sat within the bank’s international wealth management unit.
“I am very much looking forward to working with Ueli on the Executive Board and I am confident that he can greatly contribute to the work to be done in the current situation and will lead the new Asset Management division to future success,” Gottstein said.
Credit Suisse has faced increasing scrutiny after suspending a $10bn suite of Greensill-backed funds before the firm filed for insolvency.
Earlier this week the bank warned it may book a charge following Greensill’s collapse as it tries to recoup a $140m loan made to the firm last autumn.
The Financial Times previously reported that the bank’s executives overruled risk managers’ concerns about extending the loan.
“While these issues are still at an early stage, we would note that it is possible that Credit Suisse will incur a charge in respect of these matters.” It added its main priority remains recovering money that investors had placed into the bank’s supply-chain finance funds.
Greensill specialises in supply-chain finance providing short-term credit to businesses, which it bundled and sold to financial firms.
Last week Greensill Capital filed for insolvency after losing insurance coverage for its debt repackaging business. Court filings showed founder Lex Greensill said he kept senior individuals at the Swiss bank informed about the funds’ insurance coverage in the “weeks” leading up to its insolvency application.