Lehmann addressed shareholders at Credit Suisse’s final general meeting before the UBS takeover
Lehmann, serving as chairman, outlined two clear paths: settle the situation or endure bankruptcy. At the anticipated opening of what would be Credit Suisse’s last shareholder meeting, he offered a formal apology for the crisis that necessitated a rapid merger under Swiss oversight. He explained that the merger had to proceed and terms needed agreement, even as hundreds of shareholders gathered in Zurich. The choice to sell to UBS, bypassing a board vote, was described as one of the most difficult moments, yet Lehmann maintained that it delivered a resolution that provides clarity, security, and stability.
The Credit Suisse chairman warned that a full restructuring under Swiss banking law could have produced the worst outcome, potentially leaving shareholders broke and introducing unforeseen risks for customers with broad consequences for the economy and global markets. While the transformation did not fully take shape, markets had already felt turbulence from the recent upheaval among major banks. The collapse of Silicon Valley Bank and the ensuing stress reflected in Credit Suisse valuations raised concerns that bank failures could spill over into the wider sector. The German banking sector also faced questions amid shifting valuations and renewed scrutiny.
Lehmann described the day as profoundly sad, acknowledging the pain, anger, and shock experienced by those affected in the weeks leading up to the sale. Among the most disappointed were holders of AT1 bonds, who organized legal representation with the prominent firm Quinn Emanuel to pursue potential litigation aimed at recouping losses from the merger.
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Since taking the helm in early 2022, Lehmann has steered a restructuring program designed to steer Credit Suisse away from its financial and reputational crisis. Yet at the shareholder gathering, he conceded that there was no immediate fix to the damage, arguing that the bank had countered negative headlines with tangible actions. The board had already discussed replacing Antonio Horta-Osorio, the former CEO who resigned after revelations about travel and attendance at events in a restricted manner. Lehmann himself had recently faced scrutiny, with the Swiss financial regulator questioned for comments that could mislead potential investors.
Related developments showed stark earnings shifts: in 2021 the bank reported a net loss of 1.572 billion Swiss francs, rising to 7.293 billion francs in 2022. The decline stemmed from eroded investor confidence and exposure to high-risk entities that had collapsed in prior years, including notable exposure to well-known funds and specialty finance firms. By the end of 2022, the bank faced a significant withdrawal of deposits reaching 123.2 billion Swiss francs, underscoring the fragile trust environment surrounding the institution.
“All plans were upended during a decisive week in March,” a Credit Suisse spokesperson told shareholders, referring to the days surrounding the March 19 sale to UBS. The period also tracked stock declines of more than 10% as broader market turmoil followed the U.S.-backed bank failures and the broader tightening of liquidity. Ultimately, UBS completed the purchase for about 3.25 billion dollars after raising its initial offer. The Swiss National Bank provided a substantial liquidity loan as part of the arrangement. The message remains that Credit Suisse will no longer exist in its current form, leaving behind a sense of disappointment and a cautious outlook for the bank’s legacy and the customers it served in the past. (Source: Industry reports)