By Ketki Saxena
Investing.com -- At Credit Suisse (SIX:CSGN)'s last-ever annual shareholder meeting, senior leaders apologized for their failings that led to the Swiss bank's fire sale to UBS. Axel Lehmann, Chairman of the bank, expressed regret and disappointment over not being able to stem the loss of trust that had accumulated over the years.
However, many shareholders said felt cheated by the demise of this 167-year-old institution. They accused Credit Suisse management of failing to secure a better price from UBS and leaving them vulnerable during a global banking crisis.
“You can almost taste the feelings of distaste and betrayal here today" one shareholder said. The bank was sold to UBS for US$3.2 billion, a fraction of its market value, to avoid its collapse during a global banking crisis.
Switzerland's attorney general has begun an inquiry into whether laws were broken in making the UBS deal. Next week, Swiss lawmakers are set to debate on this transaction in a special session of Parliament.
The CEO Ulrich Körner admitted they failed, but both executives defended selling Credit Suisse t at such low value as necessary to save Switzerland's financial system and avoid adding further instability globally.
“The bank could not be saved,” Körner said, noting that only two options were left for the bank at the end: a deal or bankruptcy.
Several shareholders demanded answers regarding why their holdings were razed by this deal. Others attacked the culture of the institution, blaming its embroilment in various scandals and missteps for contributing to the demise of the firm. One protester even walked halls with "Liquidate Criminal Suisse + Banksters Assets" on his blazer.
Mr. Lehmann concluded the five hour meeting on a bittersweet note — “Credit Suisse with its long and rich history is now taking a historical turn. We deeply regret this"