Credit Suissehas named Ulrich Koerner as its new chief executive, replacing Thomas Gottstein, in the next chapter of the Swiss bank’s turnaround effort.

Koerner, head of the asset management unit, takes over on August 1 from Gottstein, who is resigning after a two-year tenure marked by scandal and huge losses.

Credit Suisse said it would conduct a strategic review of its investment bank and other businesses as it seeks to exit from its worst period since the financial crisis.

The firm, which posted a larger-than-expected 1.59 billion franc ($2.38 billion) second-quarter loss, said the review would include driving down costs and evaluating its securitised products business.

Koerner, 59, is a Swiss banking veteran, spending more than 20 years at the nation’s two largest firms. He spent over a decade at Credit Suisse before moving in 2009 to crosstown rival UBS Group AG, where he worked with Axel Lehmann, now Credit Suisse’s chairman. Koerner rejoined Zurich-based Credit Suisse last year after losing out in a management reshuffle at UBS in 2019.

He now is set to go from running the smallest of Credit Suisse’s four main units to trying to regain investor confidence, something Gottstein has struggled to do since a series of scandals last year. Credit Suisse told investors last month to expect a third straight quarterly loss. The company’s board held early-stage talks about replacing Gottstein as far back as May, Bloomberg News reported at the time.

Lehmann is seeking to steer the bank back to profitability - and stability - after scandals such as the blow-up of Archegos Capital Management and Greensill Capital eroded investor confidence, weakened key businesses, and prompted an exodus of talent. The Swiss lender has changed its entire executive team and half its board of directors in the past year in an effort to move past the crises.

Credit Suisse shares are down about 60 per cent since Gottstein took the top job in February 2020, the worst among major global banks in that period, and are trading near record-low levels. The cost of insuring the firm’s bonds against default soared to the highest since 2009 earlier this month.

More changes appear to be coming. Christian Meissner, who runs the firm’s investment bank after joining in late 2020, is also planning to exit, the Financial Times reported.