Credit Suisse (SWX: CSGN) stock price rose by more than 2% in Switzerland after the embattled bank named a new CEO. The shares have been in a strong bearish trend in the past few months as the company has moved from one crisis to another. It has crashed by over 65% from the highest point in 2021, bringing its total market cap to about $16 billion.
The worst bank stock
Credit Suisse stock price has been in a strong downward trend in the past few months as the company has become embattled. For example, the company was accused of racism when it ousted Tidjane Thiam as Chief Executive in 2020.
The company was also caught up in last year’s implosion of Bill Hwang’s Archegos Management. At the time, the company lost over $5 billion even as other Wall Street banks made some modest losses in the crisis.
Further, Credit Suisse lost money when Greensill imploded. The bank had extended loans to the Softbank-backed company. In a recent report, the bank said that the crisis will cost its clients over $291 million.
Credit Suisse suffered from a reputation crisis when its chairman, Horta Osorio, resigned for breaking Covid rules. He was also accused of extravagant spending for his use of the corporate jet.
Credit Suisse recently paid $22.6 million for Mozambique’s tuna bonds crisis. It has also been accused of funding criminals.
Credit Suisse stock price rose in Switzerland after the company appointed Ulrich Korner as its new Chief Executive. He will replace Thomas Gottstein, who has been the CEO since 2020. Analysts believe that the new CEO will likely help solve the company as it faces numerous challenges.
In a statement, the firm said it will offer a comprehensive review of its businesses as it seeks to reduce the importance of its investment banking business. This will be the second review in 12 months.
The company reported a pre-tax loss of $1.7 billion for the first half of the year. Its revenue crashed by 36% compared to the same period in 2021.
Credit Suisse stock price forecast
The daily chart shows that the Credit Suisse share price has been in a strong bearish trend in the past few months. The sell-off saw it cross the important support level at $6.44, which was the lowest level in March 2020.
The shares are below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below the neutral point of 50.
Therefore, the shares will likely continue falling as investors focus on the company’s crisis and the new strategy by the new CEO.
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