Credit Suisse’s outgoing chairman issued a rare apology when he signs into a scandal-stricken bank.
Credit Suisse’s outgoing chairman issued a rare apology when he caught up with a bank plagued by scandal.
Urs Rohner, who has overseen a series of disasters at the Swiss bank in recent months, handed over responsibility to former Lloyds Bank President Antonio Horta Osorio yesterday.
Speaking at the annual general meeting, Runner offered the legal responsibility to head the Archegos Capital internal blowout and the Greensill Capital disaster – both of which created a hole in Credit Suisse’s finances.
Apology: Urs Runner (pictured) has been handed over to former Lloyds Bank President Antonio Horta Osorio
He said, “The unjustified losses that we have had to report to you in recent weeks have overshadowed all other strategic and operational developments in our company in the past years.
Not only our customers but our shareholders have disappointed us, not for the first time unfortunately. I apologize for this.
Runner, a former attorney who served as the chairman of Credit Suisse for a decade, initially managed to hang on during the bank’s turbulent tenure last year.
Shareholders tried to fire the Swiss businessman following a spying scandal in 2020, after it emerged that the lender had hired private investigators to track down former employees.
The disaster – which included a high-profile row between top bosses at a cocktail party and a car chase in Zurich – eventually led to the ouster of then-president Tidjan Thiam.
Horta Osorio will be joined by Thiam’s replacement, Thomas Gottstein, as the couple tries to get Credit Suisse again straight and narrow.
Horta Osorio said what happened at Credit Suisse over the past eight weeks exceeded anything he had seen in his 30-year career. His appointment to the board came as Andreas Gochling, chairman of the bank’s risk committee, agreed to step down, after shareholders threatened to vote on him after the collapse of Greensel and Archigus.
The lender faces serious questions about his risk management, after he took a £ 3.9 billion hit from Archegos and still owes millions to clients who have been exposed to Greensill.
Archegos, a hedge fund that manages financier Bill Hwang’s money, has borrowed money from several major banks so that it can buy larger stakes in companies. When stocks began to decline, Archegos got into trouble – leaving lenders including Credit Suisse with huge losses.
Greensel mobilized loans he gave to clients and sold them to investors through Credit Suisse funds. Now Greensel has gone bankrupt, Credit Suisse tries to get its customers money back.