Credit Suisse bosses face furious investors at bank’s final AGM 

Axel Lehmann faced more than 1,700 irate investors in the cavernous arena where they had gathered to mark the passing of a fallen giant.

As criticism descended on the chairman of the bankrupt Credit Suisse, he admitted: “It’s a sad day. For all of you, and for us. I am really sorry.’

Held at Zurich’s Hallenstadion ice hockey arena, it was the last annual general meeting of the once-powerful institution. Anger filled the stadium after the emergency takeover of the bank by bitter rival UBS last month.

Demonstrators gathered outside, with some capsizing a boat dubbed ‘Crisis Suisse’ to signal the bank’s demise.

One shareholder said: ‘It is unacceptable that people who can drive a bank into the ground are not sent to prison.

“It cannot be the case that directors and executives who have driven this bank into the ground over the years should be allowed to keep their salaries and their bonuses.” Another said that “everything was stolen from them” from shareholders.

And an angry investor held up a sack of walnuts and said, “A sack of these is worth about one share.” Yet another stormed the stage in the arena wearing a T-shirt that read, “Stop the rip-off.”

Acknowledging that the collapse had caused “bitter, anger and shock” in many, Lehmann told investors: “I apologize that we were no longer able to counter the loss of confidence that had built up over the years, and for disappointing you.’

He was joined on stage by CEO Ulrich Koerner, who said he was “deeply saddened” by the turn of events.

He said that while “good progress” had been made on turnaround plans, the collapse of Silicon Valley Bank (SVB) in the US caused a “dramatic loss of confidence” in the global financial system at a time when Credit Suisse was “particularly vulnerable.” used to be. ‘.

Koerner turned to bailout from UBS, saying Credit Suisse had “no choice left”.

Bankruptcy, he said, would have been “catastrophic not only for Switzerland, but also for the global economy.”

“Ladies and gentlemen, I share your disappointment,” he said.

After 167 years, Credit Suisse is giving up its independence. A proud and sometimes turbulent company history is coming to an end and something new is emerging.’

Rocking the boat: protesters at Credit Suisse’s AGM in Zurich

The comments provided little reassurance to the public, as a long line of shareholders used a cursory question-and-answer session to vent their frustration.

Attempts to put a time limit on the questions were met with jeers and jeers.

“Political masters have slumbered at work for the past 15 years,” said Guido Roethlisberger, a shareholder who wore a red tie “to signify that I and many others see red today.”

Another said that if a similar event had happened in the Middle Ages, Credit Suisse bosses could have been “crucified” and they would eventually “face Almighty God.”

Shareholder Christine Renaudin, a lawyer, called on the country’s banking industry to adopt a code of ethics so lessons can be learned from Credit Suisse’s failure. the two banks.

A protester at Credit Suisse AGM

Others asked for more details about the circumstances of the takeover by UBS, which was hastily cobbled together by Swiss authorities last month as Credit Suisse was on the verge of collapse.

The Q&A gave way to a tedious vote on several resolutions, including a vote on the company’s executive compensation package.

Investors in both UBS and Credit Suisse were not given a say in the £2.6bn discounted takeover, which is being investigated by Swiss prosecutors to find out whether government officials, regulators and bank executives have broken the law.

Credit Suisse had become an ever-troubled lender after a series of scandals and was already fighting to recover after a £99bn exodus of funds late last year pushed it to an annual loss of £6.5bn.

The company started to falter again after the collapse of SVB, but was pushed over the edge after the then chairman of its largest shareholder, Saudi National Bank, said it would not put any more money in, causing a plunge in its share price.

That led to the so-called “shotgun marriage” with UBS, orchestrated by the Swiss government and other officials.

Some think the deal will prove to be a huge success for UBS. Many of the combined group’s 120,000 workers – 11,000 of them in the UK – are likely to be less fortunate amid reports that the merger could lead to the shedding of as many as 30 per cent of jobs.