- Credit Suisse shareholders have refused to discharge the members of the Board of Directors and the Executive Committee for the fiscal year 2020.
- At the big bank’s general meeting, shareholders voted against the layoff by 59.95 percent.
- Chairman Axel Lehmann was disappointed and said the decision would be analyzed by the board.
The discharge for fiscal 2020 was ruled out at last year’s public meeting, under the impression of disaster surrounding hedge fund Archegos and supply chain finance funds working with troubled Greensill Capital.
However, the General Assembly was again unwilling to grant the discharge this year, although this time around topics related to the major catastrophes surrounding the Grencelle funds have been left out.
This is what the Grensell scandal is all about
In March 2021, the bank suddenly froze the funds created with the investment company Greensill Capital in the amount of ten billion dollars. Credit Suisse advisors had been collecting money from investors for years and investing it in funds that were considered low risk. They declared that the loans behind them are fully insured. When the insurance companies withdrew their protection, the British-Australian company Greensell had to file for bankruptcy.
Credit Suisse commissioned an external investigation into the incident but did not publish the results. Many employees have been laid off or fined. Several investors have also sued Credit Suisse. According to its own data, the institute has now repaid $6.75 billion to investors.
CS Chairman of the Board of Directors, Axel Lehmann, noted the refusal to lay off “with regret.” The Board of Directors will now discuss how to proceed. Unlike the discharge for fiscal 2020, shareholders approved the 2021 discharge proposal with a 77.5 percent yes vote. However, topics related to Greens money were also explicitly excluded from the 2021 relief.
Stronger customer focus
At the public meeting, Lehman stressed the changes in the bank after the ongoing series of meltdowns. Last but not least, the Bank, management and management team will be sustainably redesigned and strengthened in a targeted manner. “The changes have to start at the top,” Lyman emphasized.
The president promised that the bank would focus more on customers in the future. However, at the same time, it implements “more systematic, more present and monitored risk management”. “Everyone in our bank should know and feel that when it comes to risk, there is no freedom in quantity and capacity.”
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