Credit Suisse’s annual general meeting was held on Tuesday, 16 days after its takeover by UBS. Shareholders were able to express their anger and frustration at the bank’s implosion. Credit Suisse chairman, Axel Lehmann, apologized for the bank’s failure, saying he was “truly sorry” that it could not be saved. Lehmann was brought in as chairman to fix the bank after a series of scandals had undermined investor confidence. The Swiss government, central bank, and financial regulators pressured UBS into taking over Credit Suisse on March 19. The Swiss bank had suffered a net loss of $7.9 billion in 2022, causing the value of shareholders’ investments to plunge.
Credit Suisse’s share price fell more than 30% on March 15, to a record low of 1.55 Swiss francs. Despite assurances, shares recovered little ground, closing at 1.86 francs on March 17. Fearing the worst when the markets reopened on March 20, the Swiss government orchestrated a deal with UBS to patch things up. Credit Suisse, which has been part of Switzerland’s national identity for 167 years, was unable to be saved, Lehmann insisted. He said that ultimately, there were only two options: deal or bankruptcy. Koerner, Credit Suisse’s CEO, expressed his sadness at the end of the bank, but said the takeover by UBS was the only solution.
The collapse of Credit Suisse would have been disastrous not only for Switzerland but also for the global economy at large, Koerner added. Credit Suisse and UBS are both among the 30 worldwide Global Systemically Important Banks, which are considered too big to fail. However, the markets perceived Credit Suisse as a weak link following the collapse of three US regional banks in early March. The bank's implosion was a significant blow to its shareholders, and many have lost their investments. Nevertheless, the takeover by UBS was deemed necessary to save Credit Suisse from collapsing and to prevent an international banking crisis.
