Credit Suisse investors angrily confront bank as chairman says sorry

Shareholders in Credit Suisse have told the firm they feel “failed” and “cheated” after the collapsed bank was rescued by its long-time rival UBS.

On Tuesday, the 167-year old Swiss bank faced investors for the first time since the deal was struck and for the last time as an independent firm.

Credit Suisse chairman Axel Lehmann said he was “truly sorry”.

But one investor told the bank that shareholders had “everything stolen from them”.

Credit Suisse was rescued by UBS last month in a deal brokered by authorities after turmoil in the US banking sector sent the Swiss lender’s shares tumbling.

The loss-making bank had already been struggling for a number of years after a series of scandals, compliance problems and bad financial bets.

Mr Lehmann told investors at the Annual General Meeting that management had a plan to turn things around but had been “thwarted” by fears prompted by the collapse of Silicon Valley Bank in the US.

But one shareholder suggested the board would have been crucified in medieval times.

Another held up a sack of empty walnut shells, saying they cost the same as a single Credit Suisse share.

Credit Suisse’s chief executive Ulrich Korner said: “I understand that you feel disappointed, shocked, or angry.

“I share the disappointment of you, our shareholders, but I also share the disappointment of all of our employees, our clients and, ultimately, the general public.”

Shareholders in both Credit Suisse and UBS – which will hold an investor meeting on Wednesday – have been denied a vote on the takeover because of the emergency measures taken by the Swiss government to rush the deal through.

Mr 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.”

Credit Suisse bosses knew they would have to eat humble pie at this meeting, but despite numerous apologies the shareholders remain angry.

It’s common for middle-class Swiss people, especially the elderly, to invest money in a few shares as a back-up to their pensions. What have they traditionally considered safe? Switzerland’s two biggest banks. But now Credit Suisse shares are worth less than 10% of what they were two years ago.

One man representing a group of shareholders accused Credit Suisse management of “greed and incompetence”, another pointed to his red tie, saying he was wearing it to represent the “red card” Credit Suisse deserved.

Others turned their anger on the Swiss government, which forced through the takeover by UBS over just one weekend while the markets were closed. Some of us, said one shareholder, spend more time choosing our smartphones.

Venting their anger is just about the only action the shareholders can take; the deal with UBS is done. Apologising again, CEO Ulrich Korner said there had been little choice, it was either take the deal with UBS or bankruptcy, which he said would have been catastrophic not just for Switzerland, but for the entire global economy.