The sudden departure of Chairman Johannes Rueegg-Stuerm doesn't solve Raiffeisen's battered. The embattled bank needs another resignation in order to restore its reputation. 

On Friday, Johannes Rueegg-Stuerm depicted his immediate resignation as Raiffeisen chairman as a bid to preserve the the retail lender's credibility. 

The bank's trust is taking a severe beating: Pierin Vincenz, who ran Raiffeisen from 1999 until 2015, remains remanded in a Zurich jail as prosecutors investigate allegations of mismanagement and fraud. New details of dealings by Vincenz and an associate, Beat Stocker, are emerging daily.

Break With 16-Year Era

Raiffeisen has coped clumsily: the bank first downplayed the importance of Vincenz's transactions, even as Swiss regulator Finma began nosing around last year. Chairman Rueegg-Stuerm completely misjudged the collateral damage from the scandal, saying as recently as this past weekend that he would stay in the role for another two years.

Also on Friday, his temporary replacement, Pascal Gantenbein, called Rueegg-Stuerm's resignation as part of attempt by the bank to distance itself from the 16-year Vincenz era.

He also pledged a «seamless» review of Vincenz's tenure «from this day forward» – making clear that the review will not just center on transactions around investment firm Investnet, which has been in focus, but also on software developer Commtrain.

«Vincenz Pattern»?

A retail lender specialized in mortgages and small business loans when Vincenz took over, Raiffeisen went on to snap up stakes in investment firms Aduno and Investnet, forge a tie-up with Swiss private bank Vontobel in 2004, buy the remaining parts of collapsed Swiss private bank Wegelin, and build up considerable stakes in software maker Avaloq, insurer Helvetia, and derivatives boutique Leonteq.

Those deals will also be screened for evidence of the «Vincenz pattern» – where the former CEO allegedly enriched himself on the transactions through firms that concealed his identity.

The Problem: Patrik Gisel