Joe Ackermann on CS death: “I’m really pissed off”

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When Credit Suisse collapsed on March 19, 2023, Deutsche Bank’s former chairman, Joe Ackermann, was far away. He watched the media conference in Helsinki. But the end still took him away, he explains to “Tages-Anzeiger” in an interview. “I was really angry when CS went under.” The business model is not compatible with profitability and the bank management has not communicated correctly for a long time. There were also many personnel changes. “Everyone had their own agenda”

Before joining Deutsche Bank, Ackermann worked at what was then Kreditanstalt, now Credit Suisse, where he rose to the executive level. He left the bank in 1996 after falling out with the board.

Another desired solution

Ackermann would prefer a solution other than a takeover by UBS. It is a temporary nationalization that CS will receive as the second largest bank. “Competition is always good,” he tells “Tages-Anzeiger”. “In addition to the risks, there was also significant potential for profit for the state if implemented quickly.”

Ackermann says Credit Suisse initially went in the wrong direction, namely changing the bank’s structure and transferring the international business to investment bankers. I expressed many of my criticisms, which still continue today, in my resignation letter.

Bonuses paid back

Ackermann also criticizes the structural change’s emphasis on bonus culture. “Bonus systems need to be designed in a way that does not create false incentives,” he says. Ackermann himself was criticized for the high bonuses. “We made mistakes at Deutsche Bank, too,” He admits. He voluntarily returned the bonus twice; about ten million francs before taxes.

But this is not an invitation for former CS managers to do the same. Each situation is unique: “This can only be claimed if there is a person directly responsible for the damage and who acted deliberately. “Providing this chain of evidence is almost impossible,” he said. “If a company is making a loss, it is best to voluntarily waive the bonus.” (brother)

Source :Blick