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In the end, it all happened pretty quickly: Credit Suisse’s last general meeting was over in just five hours, and the bank will soon be history. Still, CS will keep politicians, courts, media, lawyers, economists and historians busy for a long time.
The quick end of the General Assembly is also related to the fact that Chairman Axel Lehmann (64) gave only a few answers to many questions from shareholders. How bad was CS really just before it had to be rescued by UBS? Could the sinking of the CS have been avoided? Who is responsible for the bankruptcy? How did the “financial beheading of shareholders” occur, as Peter V. Kunz (58), a corporation lawyer, put it?
Questions that Lehmann – again for legal reasons – could not or did not want to answer at the General Assembly.
The “cry for justice” was clearly felt in the wide oval of Hallenstadion, demands ranged from professional bans to the jailing of those responsible for CS’ downfall. Many shareholders are concerned that the historically unique CS debacle is also being processed legally.
There is a great desire to complain
Vincent Kaufmann, 43, director of the Ethos investment foundation, agrees: “Shareholders have lost a lot of money, but they’re asking the right questions. It’s about the responsibility of this fiasco, not only of the board, but also of the Federal Council.”
The word “liability lawsuit” is flying around. But Kaufmann doubts that will ever happen. “It takes a lot of money to make a case like this,” the Ethos director lowers expectations.
Shareholder Alex Christian Bauer urges shareholders to form an association and take legal action against the takeover of CS by UBS. This is an interference with property rights. It also refers to the European Convention on Human Rights. “We have been nationalized. Illegal.”
The federal government is also being targeted.
The General Assembly and the death of CS will have a legal consequence, corporate lawyer Kunz is convinced: “There will be lawsuits.” Against the CS Board, but also against UBS, which will soon become the legal successor to CS. Because there is a lot of money at stake: Main shareholders, especially in the Middle East, have wasted billions of francs with their investments in CS.
Finally, the federal government, which forces the takeover through emergency law, may face the defendant: “The federal government should await state liability cases in the next few months,” says Kunz. And he adds: “I hope those concerned have already prepared for such cases.”
Lots of bait for lawyers – in politics too. The special session for CS is coming next week. There is a good chance that a parliamentary investigation commission, the PUK, will also be formed. Then the financial market supervisor might soon shed some more light on the darkness of CS’ decline. Finma was invited to a media conference on Wednesday.
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.
