Credit Suisse chair ‘truly sorry’ over downfall of 167-year-old bank

The chair of Credit Suisse has told shareholders at the 167-year-old bank’s last-ever annual general meeting that he is “truly sorry” that the lender failed to stem the crisis that led to its emergency takeover by UBS last month.

Axel Lehmann told investors gathered in Zurich on Tuesday that bosses had legitimate plans to turn the bank around but had been “thwarted” by market panic over the wider health of the global banking sector, after the collapse of the US tech lender Silicon Valley Bank the previous weekend.

He said the bank “fought hard to find a solution” but was ultimately left with two options: either strike a deal with UBS or declare bankruptcy.

“We stand here today in the situation that no one could have anticipated,” Lehmann said. “It’s a sad day for you, and for us, so I can understand the bitterness, the anger and the shock of all those who are disappointed, overwhelmed and affected by the developments.

“We wanted to put all our energy and our efforts into turning the situation around. It pains me that we didn’t have the time to do so in that fateful week in March our plans were thwarted. And for that I am truly sorry.”

He added: “I apologise that we were no longer able to stem the loss of trust that had accumulated over the years and for disappointing you.”

Credit Suisse was sold to UBS through a Swiss government-orchestrated emergency takeover on 19 March as panic over the health of the financial system swelled after the collapse of SVB earlier that month.

The Swiss lender had long been struggling to keep customers and turn profits after a prolonged series of scandals, compliance problems and bad financial bets. However, confidence was almost wiped out in mid-March after its largest shareholder, the Saudi National Bank, ruled out providing further funding because of regulations that effectively capped its investment.

The Swiss authorities were forced to step in, originally offering a 50bn Swiss franc (£45bn) line of credit, and eventually ushering in a takeover by Credit Suisse’s larger domestic rival UBS four days later.

Lehmann said the only other option would have been bankruptcy. “This would have led to the worst scenario: namely a total loss for shareholders, unpredictable risks for clients, severe consequences for the economy and the global financial markets,” he said.

“It was our duty to protect the interests of our shareholders as best we could to provide security to our clients. We did everything we could within what was possible.”