By The Financial District
Apr 9, 20232 min
Once-venerable Credit Suisse is heading into a possible firestorm Tuesday as shareholders meet for what is shaping up to be their last crack at managers following a colossal collapse of the bank’s stock price over the last decade and as rival UBS is set to gobble up the 167-year-old Swiss lender at a bargain-basement price, Jamey Keaten reported for the Associated Press (AP).
Photo Insert: In 2007, Credit Suisse shares fetched nearly 88 Swiss francs (dollars). Today, they’re trading at about 80 cents.
In 2007, Credit Suisse shares fetched nearly 88 Swiss francs (dollars). Today, they’re trading at about 80 cents.
As the stock skid worsened and jittery depositors pulled their money, Swiss government officials hastily orchestrated a $3.25 billion takeover by UBS two weekends ago.
Political leaders, financial regulators and the central bank feared a teetering Credit Suisse could further roil global financial markets following the collapse of two US banks, Courtney Bonnell also reported for AP.
Crosstown competitor UBS has been known for a more conservative culture after surviving the 2008 financial crisis, thanks in part to a government bailout.
The annual general meeting, the first held in person in four years because of the COVID-19 pandemic, takes place at a Zurich hockey arena.
Credit Suisse’s agenda will feature discussion of issues like a dividend of about 5 cents per share, the reelection of the board of directors under Chairman Axel Lehmann — who was parachuted into the top board job only last year after joining Credit Suisse from UBS in 2021 — and granting a form of approval to managers for most of their actions running the bank.
Major stockholders like the Norges Bank Investment Management want Lehmann and other directors kicked out of the bank.