People shorted volatility at their own risk, Credit Suisse CEO Tidjane Thiam told CNBC on Wednesday, when asked about the losses suffered by investors who held shares of complex volatility trading products, the most popular of which was managed by his bank.
Following a flood of criticism from market commentators and financial firms alike, Thiam insisted that the product's demise was not a hit to the bank's reputation.
"It is a legitimate market instrument that serves a purpose, is very useful for market participants to manage their risk," he said. "And yes it has had a lot of attention because this kind of short volatility, long S&P trade was run by a lot of people, at their own risk, and it worked well for a long time until it didn't. Which is generally what happens in markets."