Credit Suisse on Wednesday announced its latest series of executive-level changes, including the appointment of a new group general counsel.
Markus Diethelm will assume the role July 1, subject to regulatory approval, according to a press release. Diethelm arrives at the Swiss bank from UBS Group, where he served as general counsel and a member of the executive board from 2014-21. At Credit Suisse, he will join the executive board and report directly to Chief Executive Thomas Gottstein.
Diethelm will succeed Romeo Cerutti, who is retiring after more than 10 years in the position.
The change at general counsel comes at a time when Credit Suisse is facing mounting legal pressures. The bank last week announced its reported earnings for the first quarter of 2022 will be “negatively impacted by a decision to increase litigation provisions relating to developments in a number of previously disclosed legal matters.” The bank has set aside approximately 700 million Swiss francs (U.S. $718 million) to address the matters.
Credit Suisse’s earnings have further been negatively impacted by Russia’s invasion of Ukraine and other market developments, though the bank did note recovery of CHF170 million (U.S. $174 million) from claims regarding Archegos Capital Management.
The collapse of Archegos, a U.S. hedge fund, resulted in significant losses for Credit Suisse that triggered the bank to significantly restructure its approach to risk management. Chief Risk and Compliance Officer Lara Warner was among the first to step down in the aftermath of the Archegos meltdown, and her roles were split between new hires David Wildermuth (risk) and Rafael Lopez Lorenzo (compliance).
The bank has also made risk-focused changes at the board level, including the recruitment of former Wells Fargo Chief Risk Officer Amanda Norton last month.
Prior to UBS Group, Diethelm served as general counsel at UBS AG from 2008. He previously worked as group chief legal officer at Swiss Re.
Additional executive changes announced by Credit Suisse on Wednesday included the departure of Chief Financial Officer David Mathers after serving in the role since 2010. The bank has launched a search for his replacement, with Mathers staying on to assist in the transition.