Credit Suisse President Axel Lehmann on Tuesday blamed shareholders for the Swiss bank’s failure to revive itself, requiring government intervention for Credit Suisse to take over rival UBS Group AG, Reuters and Agerpres report.
“I apologize for not being able to stop the loss of trust that has built up over several years and for letting you down,” Axel Lehmann told Credit Suisse shareholders gathered for the last annual general meeting in the bank’s 167-year history .
“We failed to stop the impact of scandals and counter negative news with positive facts. In the end, the bank could not be saved,” added Lehmann.
Two weeks ago, UBS agreed to buy rival Credit Suisse for three billion Swiss francs ($3.3 billion) in a deal brokered by the Swiss government, the National Bank and the Financial Markets Regulator to avoid the collapse of the Swiss company. financial system.
Swiss authorities insist that given the urgency with which things unfolded, they had no choice. In the days leading up to the UBS buyout, Credit Suisse had seen a sharp deterioration in its ability to access liquidity.
The Swiss government bailed out the shareholders of Credit Suisse
According to Swiss Finance Minister Karin Keller-Sutter, a state takeover of Credit Suisse or a controlled liquidation process are not viable alternatives, given the unacceptable financial risks they would create for taxpayers.
Credit Suisse shareholders, who will receive just 76 cents for each of their own Credit Suisse shares, will gather in Zurich on Tuesday for a final general meeting. There will also be a UBS shareholders meeting later, also in Zurich.
The merger of UBS/Credit Suisse will be carried out without the approval of the shareholders, the authorities cancel the obligation to consult with the shareholders in the interests of the stability of the financial market.
Switzerland’s attorney general has announced the opening of an investigation into the UBS Credit Suisse takeover, saying in a report that “numerous events” surrounding the deal merit investigation.
The collapse of Credit Suisse followed the sudden bankruptcy of US banks Silicon Valley Bank and Signature Bank, an event that caused panic among investors and contagion in the European banking market.
Source: Hot News
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