Credit Suisse CEO Tidjane Thiam said hedge funds are wrong to assume that the Swiss lender will have to raise additional capital after the shares touched a fresh all-time low last week.
The lender’s share price is hurt by «an unusually high level of short positions,» Tidjane Thiam wrote in a memo to staff last week, according to a report from news agency «Bloomberg».
While some hedge funds are speculating on another capital increase, partly because of restructuring measures and operational losses, they’re «not correct,» Thiam wrote.
Restoring Profitability
Credit Suisse shares have lost about 42 percent this year, touching the lowest since at least 1989 on June 16, data compiled by «Bloomberg» show.
Thiam has struggled to restore profitability and reverse a drop in shares, which has eroded about half the company’s market value since he took over in July.
Visiting Clients And Investors
As part of his overhaul announced last year, the CEO raised 6 billion Swiss francs ($6.3 billion), while seeking to eliminate thousands of jobs and cutting back the securities unit to focus on wealth management.
According to «Bloomberg» Thiam plans to visit clients and investors next month, with a focus on New York, London and Singapore. A spokeswoman in Zurich declined to comment.
