London (CNN) Credit Suisse chairman Axel Lehmann apologized to angry shareholders on Tuesday. sick Swiss lenders emergency rescue Investors suffered heavy losses last month.
“Today is a sad day, for everyone and for us,” Lehmann said at the bank’s final annual general meeting as an independent company at the ice hockey stadium in Zurich.
The somber affair felt like the funeral of a lender who has been a key driver of Switzerland’s financial crisis. Economic development For the past 167 years. Protesters gathered outside the venue, some erecting overturned boats to signify the bank’s demise.
Protesters hold a boat with the words “Crisis Suisse” on it during a demonstration outside the Credit Suisse Group AGM in Zurich, Switzerland, on April 4, 2023.
credit suisse (CS) Shareholders used the meeting to vent their frustrations and lash out at the bank’s board for a government-schemed takeover by a Swiss lender by a larger rival. UBSMore (UBSMore).
Shareholders of both banks were denied a vote on the transaction and were forced through Two weeks ago by the Swiss government to prevent Credit Suisse from collapsing and triggering a wider financial crisis.
The lender’s shareholders were largely wiped out by the bailout, receiving just CHF0.76 worth of UBS shares for shares that were worth CHF1.86 before the deal was announced. Owners of $17 billion worth of additional Tier 1 bonds (riskier bank debt) lost everything.
Vincent Kaufman, CEO of the Ethos Foundation, which advises pension funds and other shareholders, said at a conference on Tuesday that “numerous scandals” in recent years “completely damaged the bank’s reputation.” rice field.
“And today we have stock worth only 75 cents, a huge loss for all of us,” he said.
Credit Suisse is out of time
Scandals and non-compliance have plagued Credit Suisse in recent years, wiping out profits and costs. Some top manager jobs.
The lender was pushed to the brink of bankruptcy after turmoil in the U.S. banking sector reignited stock selling and forced customers to withdraw their deposits.
Lehman said he believed the bank was capable of a “successful turnaround” until the week the forced merger with UBS was announced.Credit Suisse announced a major overhaul of its bank October.
Credit Suisse Chairman Axel Lehmann (left) speaks next to Credit Suisse CEO Ulrich Korner at the AGM in Zurich on April 4, 2023.
“We wanted to put all our energy and effort into turning things around and getting the bank back on track. said Lehman.
“In that regard, I am very sorry. I apologize for the disappointment that I was not able to stop the loss of trust that I have built up over many years.”
Lehman said the situation “worsened” over the weekend when the deal with UBS was finalized. “There was a massive outflow of funds,” he noted.
After the comment, the outflow accelerated. ex now The chairman of the Saudi National Bank, the largest shareholder of Credit Suisse, has ruled out increasing the bank’s stake in Swiss lenders.
Shareholders voted Tuesday to re-elect Lehman as board chairman. His reappointment was approved by his 55.67% of those who voted, with 43.66% voting against. Shareholders have approved all other directors running for re-election.
Credit Suisse’s remuneration report sets out the bank’s remuneration policy and was accepted by 50.06% of shareholders who voted. Just under half of shareholders voted against accepting the report.
Credit Suisse’s top 10 shareholder, Norges Bank Investment Management, said it would vote against reappointing Lehman and the bank’s six other directors.
The annual meeting will take place just two days after the Swiss federal prosecutor said it would take place. investigation Whether the officials and executives of the two banks violated the country’s criminal laws during the acquisition process.
The deal left the Swiss economy exposed to a single large lender, requiring $200 billion in liquidity and guarantees from the government and the Swiss National Bank.
UBS holds its annual shareholder meeting on Wednesday.
