"Banker or Gangster?" Shareholders Criticize... CS Chairman Bowing Head

Stock Price Falls Further After UBS Acquisition
Becomes a 0.81 Euro Penny Stock

The chairman of Swiss investment bank Credit Suisse (CS) bowed his head at the first shareholders' meeting held after its acquisition by UBS. This occurred just one month after a series of investment failures, corruption scandals, and a liquidity crisis pushed the bank to the brink of bankruptcy, leading to government mediation and its acquisition by UBS.

According to Bloomberg and other sources on the 4th (local time), at the CS shareholders' meeting held in Zurich, Switzerland, shareholders continued to voice their criticism, questioning the causes, accountability, and management's negligence regarding the situation.

This was the first annual shareholders' meeting held since the decision on the 20th of last month for CS, which was engulfed in a liquidity crisis due to a series of investment losses, corruption scandals, and the major shareholder's cut-loss decision, to be acquired by UBS.

After the stock price plummeted day after day and the credit default swap (CDS) premium surged to an all-time high, reaching a peak of default fears, CS was sold to UBS and underwent a massive restructuring, resulting in the forced merger with UBS and the disappearance of the 167-year-old CS name.

Despite the already plummeting stock price, it fell further after UBS's acquisition, with CS shares listed on the Swiss Zurich Stock Exchange closing at a penny stock price of $0.81 on that day.

[Image source=EPA Yonhap News]

Axel Lehmann, chairman of the CS board, apologized at the shareholders' meeting, saying, "I am truly sorry for betraying the trust shareholders have placed in us and causing disappointment."

He added, "We could not save the bank. The only options available to us were either a merger and acquisition deal or bankruptcy."

Following Lehmann's remarks, a Q&A session erupted with shareholders' outcries. One shareholder raised their voice, saying, "You are ruining our livelihoods, yet can you still sleep at night?"

Another shareholder appeared at the meeting wearing a jacket with the phrase "Sell the assets of the 'bangster'." The term "bangster" is a blend of "banker" and "gangster."

Despite believing management's claims that the bank had the ability to survive the crisis and continuing to invest, shareholders expressed their frustration and anger over the outcome.

A university student shareholder appealed, "I believe you understand our hardships well, but the difference between you and us is that you have the power to take action," urging, "Please take the necessary measures on behalf of all investors present here."

At the shareholders' meeting, a resolution was passed to reappoint Chairman Lehmann and the directors. The board is expected to hold their positions only during the transitional period until CS is fully merged into UBS.