Unlike his arch-rivals at UBS, Credit Suisse CEO Brady Dougan managed to avoid a government bailout during the financial crisis by raising capital in the Gulf. Nonetheless, the big Zurich bank experienced a rocky 2008.
So with markets reviving strongly in 2009, Dougan, 50, prudently dialed down risk and cut back on proprietary trading and structured product activities to concentrate on flow business in bonds and equities and on gaining market share in prime brokerage. Credit Suisse has bounced back impressively and is once again solidly in the top tier of global investment banks. Even the private banking arm raked in money, despite U.S. officials’ probe into offshore tax evasion by Americans.
The big question now: Will Dougan ramp up risk-taking, when conditions permit, and open Credit Suisse’s hefty checkbook for acquisitions?
