Lehmann’s statement is funny but true

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The tweet brought down Credit Suisse. This is evidenced by statements made by Finma director Marlene Amstad and CS boss Axel Lehmann on Sunday.

It’s funny, but not fundamentally wrong.

The fact that a bank as big as CS, considered ‘too big to fail’ around the world, can be so derailed by a tweet from an Australian TV journalist is an indictment of poverty. This shows that a lot has already gone wrong in CS.

So when Axel Lehmann sets off a storm of shit on social media, when a journalist asks him who is responsible for this disaster, it’s weak. It would be an opportunity for self-criticism. And for an apology.

However, the topic is relevant. This week I’ve been asking industry representatives; fear of social media is real among banks. Currently, rumors about Twitter and the company are spread at the touch of a button. And they are spreading at breakneck speed thanks to the power of social media.

How should the bank react to this? Difficult. Anyone commenting on every rumor is making themselves vulnerable. The one who is silent, like CS, loses credibility.

And trust is the most important currency of any bank. Once the trust is gone, it’s too late. The Credit Suisse example shows this. A bank that is actually healthy thanks to financial metrics like core capital ratio. And yet you suddenly find yourself in front of a pile of broken glass.

CS could no longer stop the run from the bank. Customers would have withdrawn billions of francs from the bank if UBS had not taken over on Sunday. Vicious circle. Solid financial indicators suddenly cease to play a role. It’s the head that decides. Crazy game brutal!

What could have come to this is not at all because of a tweet. A person does not blindly believe every rumor. But after years of mismanagement, bankruptcy rumors suddenly seem plausible.

This is not the fault of the Australian TV journalist, but of Messrs. Rohner, Thiam, Gottstein or Koerner (the list is incomplete).

Source: Blick