Credit Suisse Group AG chairman Axel Lehmann apologized to shareholders on Wednesday for failing to stem the loss of trust in the bank. He also noted that his credibility began long before his own inauguration.
In a speech prepared for the annual shareholders’ meeting in Zurich, he said, “We were unable to stem the impact of past scandals and offset the negative news with positive facts.” I couldn’t save it,” he said.
Chairman Lehmann apologizes to shareholders Source: Bloomberg
The management of Credit Suisse, which closed its 167-year history with a takeover by rival UBS Group AG, has publicly admitted to its shareholders that it had made a mistake. A 3 billion Swiss franc ($4.2 billion) takeover was agreed last week to end a crisis of confidence following years of scandals, losses and risk mismanagement.
The deal was not approved by Credit Suisse and UBS Group shareholders, underscoring the urgency of the situation for the Swiss government that negotiated the solution.
In announcing the acquisition, the government included provisions in the constitution that allow the government to issue temporary decrees “to respond to existing or imminent threats that may seriously threaten public order or national or international security.” Quoted. This time, it overturned a law on mergers that required a shareholder vote.
“We wanted to put all our strength and efforts into turning things around and getting Credit Suisse back on its feet,” Lehmann said. “I am heartbroken that our plans were derailed in 2015. I sincerely apologize for this.”
Shareholders entering the venue of the general meeting of shareholders
Photographer: Stefan Wermuth/Bloomberg
This will be the first face-to-face general meeting of shareholders in several years, as the virtual general meeting of shareholders has continued due to the new coronavirus.
Shareholders and proxy voting advisers had expressed their dissatisfaction with the board and management ahead of the meeting, saying they would reject the reappointment of some board members, including Mr. Lehmann. It is unclear which executives will survive the merger, but Lehmann and CEO Ulrich Körner are expected to leave.
Credit S would have gone bankrupt if UBS hadn’t taken over
Original title:Credit Suisse Chairman ‘Truly Sorry’ for Failure to Stem Crisis(excerpt)
