Victims of $1bn Credit Suisse fraud make open offer to new Chairman
Sunday 8 August marks 100 days since Antonio Horta-Osorio became Chairman of what was once Switzerland’s most venerated banking giant – Credit Suisse.
- To five former clients of CS’ Wealth Management Division, that’s $10m per day of his tenure they’ve lost to fraud at the hands of the bank, due to failings of managerial oversight of Patrice Lescaudron and his colleagues;
- To shareholders, that’s a further $5.5m per day of his tenure lost to Archegos’ default due to failings of managerial oversight and a lackadaisical attitude to risk;
- To investors that’s an additional $2.3m per day of his tenure of exposure to the Greensill supply chain financing failure and one pan-European/Asian class action;
- To creditors of Mozambique’s tuna bonds that’s 1 High Court trial and $6.2m per day of his tenure of unaccounted for loans at the hands of 3 corrupt Credit Suisse employees and poor management oversight;
- To staff that’s 2400 hours of declining morale and no doubt disappointment in the Board’s handling of mounting crises;
- To shareholders that’s 27% of 2021 with a flat-lining share price while competitors rally.
Like his fire-fighting time at Lloyds beforehand, Horta-Osorio will be finding life at Credit Suisse just as incendiary.
However, representatives of the five victims of Credit Suisse’ fraud, investment mismanagement, and failed compliance controls are offering to meet the Chairman to help him finally extinguish the smouldering wreck of fraudulent activity at the bank, to allow Horta-Osorio to focus on the clean-up of legacy issues required of his position. This Chairman has been unafraid to take remedial action in his previous role – the CS victims now anticipate a similarly decisive approach.
Charlie Wigan, spokesperson for the Credit Suisse victims says:
“If anyone can take command – by getting Credit Suisse to face up to, and act on, its wide-reaching failings brought to light over the past few years through regulatory reports, internal inquiries, criminal investigations and multi-jurisdictional claims – I have faith that this Chairman can.
“Certain Board members are under increasing pressure for the part they played in the group’s neglectful attitude to risk and compliance. In order to draw a line under past wrongdoing and to give optimism to those stakeholders invested in the bank’s future, Horta-Osorio will need to tackle legacy risk issues and make good the significant losses suffered by influential international investors without further delay. This matter represents yet another significant litigation drain on the bank’s resources and will blight the Chairman’s tenure until it is resolved.”
For further information, please contact:
Bell Yard Communications Tel: +44 20 7936 2021
Melanie Riley BellYard@bell-yard.com Tel: +44 77755 91244
(8 August 2022)