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Axel Lehmann, CEO of the second largest bank in Switzerland, offered a public apology this Tuesday, April 4, for the collapse of the entity, during a general assembly in which the fury of those who lost their money prevailed.
Hundreds of shareholders hurt by Credit Suisse’s near-collapse were greeted in Zurich by an environmental organization with a shell of a sinking ship for what may be the last meeting of a bank in its 167-year history.
The meeting of more than 2,000 attendees lasted for five hours and was presided over by a litany of critics from shareholders, large and small, who made their way to the main dais to vent after the tumultuous end of the bank, which many of them have found caused losses.
“I feel that this institution has deceived me,” said the first shareholder to speak, who assured that those responsible for the entity “rested on their laurels for the last 15 years.”
Shareholders criticize the fact that the Swiss government designed and agreed to the sale of Credit Suisse for about 3,300 million dollars, 60% less than its stock market value on the days of the announcement.
Shareholder advisory firm Ethos denounced the “greed and incompetence of its managers” for years, as well as the pay of its top executives, which reached “unimaginable levels.”
Meanwhile, security holders who saw their investments evaporate were not consulted about the merger, as the rules stipulate.
“I lost 10,000 Swiss francs ($11,000),” Stephan Denzler told the AFP agency through tears at the entrance to the assembly. “For my family it is a lot of money,” he explained.
Credit Suisse stocks have lost much of their value in recent years. At the beginning of March they registered a fall of 80% with respect to their price of two years ago. Only on March 15 did they plummet 30% and hit a low of 1.55 Swiss francs.
“It was sale or bankruptcy”
Before being reappointed as the bank’s top executive before it is taken over by UBS, Credit Suisse Chairman Axel Lehmann apologized for bringing it to the brink of bankruptcy. In the same session, he was re-elected in a very tight vote from one of the most tense shareholder meetings the firm has had to experience in its history.
“The bitterness, anger and shock of all those who have been disappointed, overwhelmed and affected by the events of recent weeks are palpable (…) Ultimately there were only two options: an agreement or bankruptcy. The merger had to be carried out,” he defended.
After years of scandals and losses, Credit Suisse was on the verge of collapse before UBS rushed to the rescue, a move that angered not only shareholders but many in Switzerland. A poll by political research firm gfs.bern found that a majority of Swiss did not support the deal.
With Reuters, EFE and AFP
