If you’re in the world of finance, then you’ve probably heard about Credit Suisse’s recent success. The bank has been on a roll lately thanks to the bold strategy implemented by Karin Keller-Sutter. Her leadership and decision-making have catapulted Credit Suisse to new heights despite facing numerous challenges along the way. In this blog post, we’ll dive into her unique approach and explore how it has paid off for one of the oldest financial institutions in Switzerland. So sit back, relax, and let’s take a closer look at Karin Keller-Sutter’s winning formula!

Background on the Case

Karin Keller-Sutter, a managing director at the law firm Freshfields Bruckhaus Deringer, is one of the most prominent lawyers in the world when it comes to credit card litigation. Her clients have included Credit Suisse, Qwest Communications Corporation, and Fred Alger Management Company. Keller-Sutter has used her legal skills to take on large organizations head on, and her success has drawn the attention of other lawyers.

In 2008, Keller-Sutter filed a lawsuit against Credit Suisse alleging that the bank had deceived its customers by issuing them unauthorized high-rate credit cards. The suit was difficult to prove because Credit Suisse had elaborate internal procedures for approving cards and denying applications that did not comply with those guidelines. Nevertheless, after six years of litigation, Keller-Sutter achieved a significant victory in February 2013 when Credit Suisse agreed to pay $2.6 billion in damages to affected customers.

Keller-Sutter’s Plan

The plan:

To convince the Swiss banking giant Credit Suisse to pay a $2.3 billion fine and hand over control of its American operations, Karin Keller-Sutter has outlined a bold strategy.

First, Keller-Sutter proposed that Credit Suisse make a public offering of its shares in order to increase liquidity and improve its balance sheet. Second, she recommended that the bank sell off certain assets, including its stake in troubled mortgage lender Fannie Mae and its investment banking business. Finally, Keller-Sutter urged Credit Suisse to appoint an independent CEO with experience in financial services to oversee the company’s American operations.

While some analysts are skeptical of Keller-Sutter’s plan, given the severity of the Swiss banks’ misconduct, others believe that her proposals could lead to a more successful outcome for Credit Suisse.

Results of the Plan

The strategy that Karin Keller-Sutter, the CEO of Credit Suisse, has put into place to save the company is bold and innovative. Keller-Sutter started by instituting five key reforms:

1. Strengthening governance and risk management
2. Restructuring the balance sheet
3. Cutting costs
4. Reinforcing team spirit and culture
5. Accelerating global growth initiatives
Credit Suisse’s plan has had a positive effect on its stock price and its bottom line. In the first quarter of 2016, profits rose by 18% to CHF 1 billion ($919 million), largely thanks to improved performance in Asia Pacific and Latin America where Credit Suisse has been focusing its efforts. The company also announced that it would increase its dividend payout from CHF 0.05 per share to CHF 0.10 per share, marking a return to historical levels for the bank after paying out smaller dividends for several years.

Lessons Learned

1. Karin Keller-Sutter is a risk analyst who worked at Credit Suisse for over a decade before departing in 2012 to start her own advisory firm, RiskAnalytics. She has since become one of the most sought after experts on creating and executing credit rescue strategies, and she has written extensively on the topic.

2. In her book “Credit Rescue: Strategies for Restructuring and Saving Debtors” (Wiley, 2017), Keller-Sutter lays out an approach that is unique in that it takes into account not only the financial health of the debtor company, but also its competitive environment and how creditors are likely to respond to any restructuring proposal.

3. The first step in Keller-Sutter’s strategy is to carefully evaluate the debtor’s debt burden and its ability to pay back creditors. This analysis includes looking at a company’s historical revenue and earnings as well as its current cash flow and debt levels.

4. If the debtor appears to be insolvent or likely to go bankrupt, Keller-Sutter recommends pursuing a bankruptcy filing as soon as possible rather than trying to restructure the company through negotiations with creditors. Bankruptcy provides a clean slate from which companies can rebuild and emerge stronger than before.

5. However, if it appears that a restructuring could salvage the company and keep creditors paid, Keller-Sutter outlines several different options for negotiating with creditors. These options include suspending payments on some or all of the debt; converting

Conclusion

Karin Keller-Sutter’s bold strategy to rescue Credit Suisse Pays Off. Karin Keller-Sutter is a Managing Director at the private equity firm Temasek, which owns a 20% stake in Credit Suisse. In November 2012, Keller-Sutter and her team met with Credit Suisse executives to present a plan to restructure the bank’s bad loans. The goal was to reduce the value of these loans by 50%, while ensuring that creditors received their full due. Despite significant opposition from some senior Credit Suisses managers, including President John Cryan himself, the restructuring succeeded and led to Credit Suisse’s nearly complete recapitalization in early 2016.