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Lehmann apologized at the bank’s last general meeting before it was absorbed by UBS.
“There were only two options, settlement or bankruptcy.” This was voiced by Credit Suisse chairman Axel Lehmann during the expected opening ceremony. last shareholder meeting before being absorbed by the bank usbs. In his speech, he apologized for the crisis that led to the hasty merger of the entity managed by the Swiss authorities. “The merger had to continue, the terms had to be agreed,” Lehmann complained in front of hundreds of shareholders gathered in Zurich today. The sale to its direct competitor, UBS, and bypassing the shareholder vote by the board of directors was “one of the most difficult moments”, but he reassured that it led to “a solution that brings clarity, security and stability.”
The chairman of Credit Suisse said, “If a complete restructuring of the company had been chosen in accordance with Swiss banking law, “the worst-case scenario would have happened, with shareholders completely at a loss.unforeseen risks for customers, serious consequences for the economy and global financial markets”. The truth is that although this transformation has not materialized, markets have been rocked by the stock market crashes of major banks for the past two weeks. The crisis that began with the bankruptcy of Silicon Valley Bank and the subsequent collapse of Credit Suisse Due to Ibex’s bank valuations losing 24,000 million in just four sessions on the stock market, there were also fears that bank bankruptcies would extend into 2000. The German Bank.
“Today is a sad day“, said Lehmann, “the pain, anger, and shock of all those who have been disappointed, overwhelmed, and affected by the events of the past few weeks are palpable”. Undoubtedly, the most disappointed are the holders of the AT1 bonds. million euros) bondholders announced that they have hired the law firm Quinn Emanuel, which is considered “the most feared” in the industry in the world”, to represent them in a possible litigation to indemnify the losses arising from the merger.
long list of scandals
Lehmann assumed the presidency of the bank in early 2022 and spearheaded a restructuring project in October last year to pull the bank out of its financial and image crisis. However, at the shareholders’ meeting, the chairman himself admitted that “there is no time to rectify the situation.” “We have not been able to overcome the impact of past scandals, we have responded to negative headlines with positive facts.Discussions have already begun over the replacement of Antonio Horta-Osorio, then-president of Credit Suisse, who was forced to resign after learning that he was traveling and attending a sporting event in a completely closed manner. Lehmann himself had recently been under surveillance. The Swiss financial regulator has been investigated for making various statements about the bank’s financial condition that could mislead potential investors.
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Business chains two-year millionaire losses: In 2021 it was 1,572 million Swiss francs (approximately 1,580 million euros) and in 2022 it increased almost fivefold to 7,293 million francs (7,340 million euros). The drop in its accounts was primarily driven by growing distrust among its investors, driven by exposure to risk companies that had collapsed in previous years, such as US hedge fund Archegos or Anglo-Australian financial services firm Greensill. At the end of 2022, Credit Suisse experienced a large deposit withdrawal of 123.2 billion Swiss francs (126 billion euros).
“All our plans were turned upside down during an important week in March,” a Credit Suisse spokesperson told shareholders, referring to the days before the March 19 sale to UBS. He refers to the company’s drastic declines in the stock market by more than 10% when it was affected by the bankruptcy of Silicon Valley Bank and Signature Bank in the United States. Finally, UBS closed its purchase of the asset for $3,250 million after significantly raising its initial bid, which remained at just over $1,000 million. The Swiss National Bank offered a $100 billion liquidity loan to Credit Suisse as part of the deal. “Credit Suisse will not exist in its current form in the futureThe chairman of the organization founded in 1856, and what remains is understandably the disappointment, bitterness and sadness at the end of a bank we believe in,” concluded Credit Suisse.