Credit Suisse president ‘really sorry’ for bank collapse
FIRST PUBLIC ADDRESS
The meeting saw chairman Lehmann and chief executive officer Ulrich Koerner address shareholders for the first time since the takeover.
Credit Suisse tried to put aside the past and restructure, before the shock caused by the collapse of Silicon Valley Bank in the United States sent it into a spiral.
After withdrawing deposits, the Swiss government turned to UBS, agreeing to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its previous market value.
The move angered not only shareholders but many in Switzerland. A survey by political research firm gfs.bern found that a majority of Swiss do not support the deal.
“The government’s use of emergency powers to push for this deal goes beyond legal and democratic rules,” said Dominik Gross of the Swiss Alliance of Development Organisations.
“Swiss taxpayers are also struggling with billions of francs from junk investments and the government, (regulator) FINMA and the central bank have given little explanation for the guarantee. guarantee a loss of 9 billion (franc) of the state to UBS.”
One of the world’s biggest investors, Norway’s sovereign wealth fund said it would vote against the re-election of Lehmann and six other directors, in a public protest.
US authorized advisor Institutional Shareholder Services (ISS) earlier reprimanded the bank’s management for its “lack of oversight and poor management”.
On the eve of Tuesday’s meeting, Credit Suisse said it was pulling certain proposals off the agenda.
Those include firing management, which is often a sign of confidence. It also waives the special bonus scheme associated with the bank’s conversion scheme.
Credit Suisse’s near collapse also wiped out $17 billion worth of additional Tier 1 (AT1) debt.
A group of AT1 investors hired law firm Quinn Emanuel Urquhart & Sullivan to claim compensation.
Meanwhile, the attorney general’s office on Sunday said Switzerland’s federal prosecutor had opened an investigation into the Credit Suisse acquisition.