Credit Suisse Banker Defends Boss - E-Mail Exchange

One Credit Suisse banker took issue with our suggestion that his ultimate CEO, Brady Dougan, might be vulnerable after those $2.85bn mispricing errors. Detailed below is the e-mail exchange (we have withheld the banker's name so that he or she doesn't get into trouble, or worse, promoted!).

Banker:

'I don't mind reading facts, but this story is ridiculous. More doom and gloom - focus on the bad, speculate, make it out to be worse then it is...Are you guys struggling for stories ?.

Brady Dougan has been an outstanding CEO, implementing excellent management strategies from the top down. Credit Suisse's 2007 results were excellent. Many staff here would be gutted if he left.

We work in investment banking - you win some, you lose some. That's the game. Write downs are part and parcel of the game. Credit Suisse is still in a strong position (despite the recent write downs). We're still on track for another excellent year'.

Editor:

'I don't think that anyone is suggesting that Dougan hasn't generally done a decent job. The fact remains, however, that this issue is now one of confidence - not performance.

High reporting standards are now expected (post Enron, WorldCom, subprime, Kerviel, etc). Dougan will appreciate that he is accountable if mistakes are made on his watch. Personally, I hope that Dougan is able to stay the course and, provided there are no more skeletons, he should be fine. But more surprises, and he WILL join the long list of CEOS who recently headed for the exits. It's the world we now live in'.

Banker:

'Last week Dougan announced record annual profits for the second year running, and what did I read in the media ? A complete focus on the (lower) fourth-quarter numbers.

You make some decent points, but I guess I'm not understanding where the lack of confidence is coming from. Has Credit Suisse made a loss ? No - others have, but we have weathered difficult conditions in an impressive manner. We have improved revenues in a number of areas and are in a great position to capitalise further this year.

We haven't hidden the problems either - regardless of the bad / embarrassing timing. We've been honest and transparent. We've identified a potentially disasterous position and nailed it before it got out of control.

Dougan is doing a great job here, and we all have confidence in him'.