Credit Suisse Trading Losses Overshadow End of Thiam Turnaround

Credit Suisse Group AG’s three-year turnaround ended with more of a whimper than a bang after trading losses eroded gains in wealth management and investment banking. The Global Markets business posted a larger-than-expected loss of 193 million francs ($191 million) in the fourth quarter, offsetting wealth management and investment banking results that beat estimates, Bloomberg News reported. In a tough quarter for money managers, the Zurich-based bank bucked a trend of large outflows at rivals, adding about half a billion francs of net new money. The results at global markets demonstrate continued challenges for Thiam as he seeks to iron out trading losses while pivoting the bank to wealth management and boosting returns for shareholders as he exits the restructuring. Global Markets has steadily become less important as Credit Suisse cut volatile trading activities and wound down areas such as distressed-debt trading after heavy losses early in Thiam’s tenure. Read more