Credit Suisse boss: Sorry
Axel Lehmann, Chairman of the Board of Directors of Credit Suisse Group AG, expressed regret at having brought the bank to the brink of bankruptcy.
Speaking at the bank’s annual general meeting in Zurich, Lehmann said that while he believes Credit Suisse can survive “until the fateful week”, time is running out to rescue the bank.
Lehmann stated that they were unable to stop the loss of customer trust despite all their efforts: “I am so sorry. I apologize for not being able to avoid the loss of trust any longer.”
TWO OPTIONS: BUSINESS OR BANKRUPTCY…
Emphasizing that they are fighting to the end to find a solution to the problems surrounding Credit Suisse, Lehmann said: “It pains me that we don’t have time to do this. Our plans were turned upside down during our fateful week in March. I’m so sorry about that.” She used the statements from him.
Noting that they ultimately had only two options left, Lehmann said: “Either a deal or bankruptcy… The merger (with UBS) had to happen.”
Lehmann also stated that the proposal to give bonuses to management would be withdrawn at the bank’s general meeting and that 5 members of the board of directors would not be candidates for re-election.
“WOULD BE A DISASTER FOR THE GLOBAL ECONOMY”
Credit Suisse CEO Ulrich Koerner said: “The failure of Credit Suisse would be a disaster not only for Switzerland but also for the global economy.”
After years of scandal, criticism of poor risk management and hundreds of billions in cash outflows, Credit Suisse was on the brink of bankruptcy and UBS bought Credit Suisse for 3 billion francs on March 19, with the support from the state and the central bank for up to $260 billion. .
While this was recorded as the biggest banking deal in Europe since the global financial crisis 15 years ago, the investigation revealed that a majority of the Swiss did not support the deal.
HARD ATTENTION OF SHAREHOLDERS
At the bank’s annual general meeting, some shareholders “strongly” criticized developments at Credit Suisse as significant money was lost and the jobs of thousands of employees were at stake.
In Europe, banks came under pressure after the deal between UBS and Credit Suisse scrapped the AT1 bond, a subordinated debt instrument with a face value of 16 billion francs ($17.3 billion).
It was claimed that up to 30 percent of UBS and Credit-Suisse employees are planned to be laid off.
Investment Management of Norges Bank, which runs the Norwegian Wealth Fund, one of the world’s largest investors, announced it will vote against the re-election of Credit Suisse Group AG Chairman Axel Lehmann and 6 other executives at the annual general meeting of the bank.
Meanwhile, the Swiss Federal Prosecutor’s Office opened an investigation on April 1 into the “urgent” takeover of Credit Suisse by rival UBS, with state support.
The deal, designed with government assistance to help ensure global financial stability, raised concerns about the size of a new bank with $1.6 trillion in assets.
Analysts say Credit Suisse’s decline has dealt a severe blow to Switzerland’s credibility as “the world’s leading wealth management center”, casting doubt on the country’s reputation for regulation and corporate governance. (AA)