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2014: Credit Suisse has to pay the highest fine ever for tax evasion: $2.6 billion. For years, CS employees have systematically helped US citizens evade tax authorities. “We deeply regret the misconduct in our previous US cross-border business,” CS CEO Brady W. Dougan (63) said at the time. This has no consequences for Dougan. On the contrary: the CEO pocketed 9.8 million francs at the end of the year – two million more than the previous year. Dougan was responsible for growing volatile investment banking and promoting American casino capitalism within the company.
Credit Suisse-style fat cream
2015: Credit Suisse posted a loss of CHF 2.9 billion. CEO Brady W. Dougan will take his place in the summer. During his eight years as bank president, he collected a total of 160 million francs. With the support of Urs Rohner (63), long-time Chairman of the Board. During his long tenure at the top of CS, he failed to set limits on investment banking. Just as it will never succeed in establishing a reasonable risk culture in CS until 2021.
Dougan’s successor, Tidjane Thiam (60), should make the bank fit for the future. Two capital increases totaling six billion should pave the way for this. A one-year phase of restructuring begins, in which the bank management can never really get the real problems under control. President Rohner isn’t setting up any railings for the excited Thiam. Ivory will receive an additional salary of CHF 90 million by 2020.
Financial crisis is catching CS
2016: CS is stuck in his past once again: he has to pay a 5.28 billion fine and compensation for his business with bad mortgage securities in the US. The business that led to the 2008 financial crisis. This is one of the reasons for the bank’s poor risk management. It will be another pitch-black year, with a loss of CHF 2.7 billion and the share fell by 60 percent to CHF 10 in twelve months.
A short breath, new scandal
2019: After another loss in 2017, the bank again made billions of dollars in profits in 2018 and 2019. The conversion seems to have been successful. But the next scandal is already looming: Iqbal Khan (47), then chief asset manager at CS, is switching to arch-rival UBS. Fearing that Khan could take clients and employees to his new employer, CS hired detectives to watch them. But they fly. Tidjane Thiam (60), CS CEO at the time, resigned as a result of the affair in February 2020. Thomas Gottstein (58) replaces him.
Nothing learned from the past
2021: Financial services company Greensill Capital goes bankrupt. CS needs to freeze four funds worth ten billion francs. The bank has returned $6.8 billion to investors to date. Just a few weeks later, US asset manager Archegos Capital speculated and CS suffered a $5 billion loss. President Rohner will not run for reelection at the April 2021 General Assembly – and for good reason. CS closed the year with a loss of over CHF 1.6 billion.
Körner will rehabilitate CS
2022: As Blick explained, then-CS President António Horta-Osório (59) broke the corona quarantine after a trip to London. Under public pressure, Horta-Osório was forced to resign in January. Axel Lehmann (64) took over. After a loss of 1.9 billion francs in the first half of the year, CS is replacing CEO: Ulrich Körner (60), known as the reorganizer, takes over and will rebuild the bank. The necessary capital injection of four billion Swiss francs comes from the Saudi National Bank. In 2022, CS will lose CHF 7.3 billion. Particularly deadly: CS customers have lost their trust. In the fourth quarter alone, 110 billion francs of client capital flowed out of the bank.
Betting against CS and the communication fiasco
2023: On March 10, Silicon Valley Bank in the USA will be temporarily closed. The bank goes bankrupt and scares investors. As a systematically important bank, CS is also becoming the center of attention. A few days later, other banks provided CS with only limited financial resources. Bank management failed to communicate with CEO Körner and VR Head Lehmann. Investors are betting big against the big Swiss bank. Fear of the banking giant’s bankruptcy is spreading. International authorities put Switzerland under pressure over the weekend. The rumor mill boiled over – until the end of CS and the takeover of UBS was finally announced Sunday evening.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
