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Urs Rohner, Credit Suisse chairman, backed CEO Tidjane Thiam in a spy scandal. finews.com parses the subtle shift in power between the uneasy duo.

After Urs Rohner's appearance on Tuesday, two interpretations of the spy scandal emerged: the Credit Suisse chairman had once again failed to take a decisive stance in sparing CEO Tidjane Thiam the ax. Rohner would sit out his tenure, set to end in 2021, as imperceptibly as he has done so far.

The other, more nuanced interpretation is that the Swiss chairman was tactically deft: the forced resignation of Pierre-Olivier Bouée provides the best possible damage control of the scandal surrounding former top executive Iqbal Khan, now with UBS. 

«Courant normal» Unthinkable

If Credit Suisse had opted to force out Thiam as well, the Swiss bank would have been massively destabilized (also, big shareholders wouldn't have been happy).

It is nevertheless unthinkable that Credit Suisse can return to a «courant normal» in its daily business under Thiam, without Rohner keeping a closer eye on his CEO.

Toxic Influence

That Rohner needs to focus more energy on managing Thiam was apparent in the chairman's anger over that a top executive of the 163-year-old Swiss bank had ordered cloak and dagger-style methods on a colleague. 

The «inacceptable» turn of events happened under the leadership, supervision, and influence of Thiam – no one around Paradeplatz doubts this. A management style which cultures such behavior is a serious problem for Rohner, and not one he can amputate with Bouée's exit. 

Scandal Fallout

Rohner conceded that the affair is far from over, especially in view of the apparent death by suicide of a Credit Suisse middleman and criminal investigation into Khan's shadowing. 

«Provided there are elements which affect our bank, of course we will address them, Rohner said on Wednesday in Swiss daily «Tages-Anzeiger» (behind paywall, in German). It had been «almost unbearable to admit that we spied on our employee,» Rohner said.