LONDON — Credit SuisseOn Sunday, Antonio Horta Osorio, chairman of the bank, resigned after violating Covid-19 quarantine guidelines. It is just the latest scandal in the string that has rocked this Swiss institution in recent years.

Horta Osorio was elected chairman of Switzerland’s second largest lender last April. His mission is to reform the company’s corporate culture following its involvement in a series of scandals. collapsed investment firm Archegos CapitalInsolvent supply chain finance company Greensill.

This was the culmination of a long and bizarre spying adventure that ultimately resulted in the resignation of former CEO Tidjane ThiamThomas Gottstein replaced.

Horta Osorio, found to be in multiple violations of Covid Quarantine laws in Switzerland and U.K. by an internal investigation, was replaced by Axel P. Lehmann. Credit Suisse insists that it is its strategic overhaulThe November announcement, which included a reduction in its investment banking business and a scaling back, was not rescinded.

CNBC reported Monday by analysts that Horta Osorio was removed from the bank’s board of directors. They also said that Lehmann was an excellent choice as the bank seeks stability.

Bruno Verstraete (managing partner, Zurich-based asset manager Lakefield Partners) said that Lehmann represented the stability bank needed, due to his vast experience in risk management.

It is possible to only wish that scandals will disappear over time and that people will turn the ship’s nose in the right direction. CNBC reported that Verstraete said it is “about time,”

Some however pointed out that the problem goes beyond the individual and that there are many legal problems facing the bank.

Credit Suisse has a job to do in the coming months. It must repair its reputation and its risk management. One thing that Credit Suisse needs to look at is whether it can retain its talent. Bob Parker is an ex-Senior Advisor at Credit Suisse and a member of Quilvest’s investment committee.

Archego saw the departure of a lot of highly skilled people from the investment bank.

The share price crisis

Credit Suisse has seen its share price take a large hit in the past twelve months. Analysts have pointed out the difference between the domestic performance and Credit Suisse. UBSThis is a sign that investors are still skeptical of the turnaround.

Credit Suisse has fallen more than 24% in the last year. It was trading at 9.37 Swiss Francs ($10.25 per share) on Monday morning. UBS, however, has seen a 31% increase over the past twelve months and trades at 18 Swiss Francs per share.

Parker commented that the stock price performance in the last months clearly shows that investors believe that many of these legacy issues will need to be repaired over time.

CNBC was informed by Beat Wittmann of Porta Advisors, a Zurich-based chairman, that Credit Suisse must rebuild its reputation through changes in business practices and leadership. This is not about seeking instant PR successes or “culture-washing”.

“The price performance difference between Credit Suisse and UBS is 50% — not five, 50% — and therefore the shares are cheap, but for many reasons cheap,” Wittmann said.

He suggested, however that Credit Suisse shares could be a good buy at current valuations if their new chairman and team of management can provide stability and strategic redirection with discipline and focus.

“Key shareholders like Harris Associates, Dodge & Cox etc., have suffered for many years, and the general public as well, so it’s all in the hands of management and the board to get this done. “It’s possible to do it,” he stated.

Is the future bright?

The third quarter revenues of Credit Suisse were robust and exceeded profit expectations, despite the impact from corruption allegations in Mozambique.

Wittmann noted that Credit Suisse’s macroeconomic backdrop is very supportive, adding to its sound financial foundations.

“For banking businesses, the last year was one of the best years on record in terms of rising risk assets, record M&A activity, basically all factors aligned and in favor of such a bank,” he said.

Wittmann stated that he wouldn’t be surprised to hear Credit Suisse launch strategic buyouts, given the possibility of unlocking the full potential, and considering the current share price. Wittmann also noted that the European landscape needs consolidation, as many regulators have already pointed out.