Finma's latest shock findings show how in recent years Credit Suisse's corporate culture has been out of kilter. In finews.asia's view it is uncertain whether the bank's new management team will succeed in restoring trust. Is there still enough time to right the ship?
At first sight, Credit Suisse's announcement that the Greensill proceedings conducted by the Swiss Financial Market Supervisory Authority (Finma) have been concluded, would appear to be positive news. On closer inspection however, the statement from the regulator is a shocking document about how negligent, irresponsible, and rapacious the management of the Swiss bank was.
Not only were alarm signals ignored, but important recommendations were also deliberately overruled, which subsequently cost Credit Suisse billions.
Precarious Corporate Culture
No wonder Finma is now taking a hard line with Credit Suisse and putting it on a very short leash by imposing control requirements that indicate a massive loss of confidence. Further details can be found under this link.
With Finma's harsh measures, it is apparent that something is very wrong with Credit Suisse's corporate culture, which has not yet succeeded in proving otherwise. This is the task of the newly conceived board of directors, chaired by Axel Lehmann, and the newly composed group executive board, headed by CEO Ulrich Koerner.
Order in the Company
As long as these executives have not provided proof to the contrary, Credit Suisse will continue to face accusations such as «the fish stinks from the head down,» placing an enormous burden on Credit Suisse employees who do their jobs responsibly day in and day out.
It will not be easy for Lehmann, Koerner & Co. to re-establish a respected corporate culture. Legacy issues still lurk within Credit Suisse, which will presumably manifest themselves in further court cases. This will in turn further undermine confidence for the time being and lead to the unceasing question of how much intent was behind all the misconduct at Credit Suisse, and how far the bank's management is capable of putting things in order once and for all.
Breakup is Imminent
The latest announcements are putting further massive pressure on Credit Suisse's stock price. Observers have long agreed that such news cannot be the weekly norm, and make the bank's turnaround even more remote.
Given the bank's volatile history over the past decade, splitting Credit Suisse into good and bad units is becoming increasingly obvious.
