Ex-Credit Suisse Executives Settle Over Risk Failures
Nineteen former top managers and directors of Credit Suisse, including ex-chairman Urs Rohner, have agreed to pay $115 million to settle shareholder claims that they failed to maintain adequate risk controls at the Swiss bank.
The payout, which will be covered by their directors’ and officers’ insurance, is to be transferred to UBS Group, which acquired Credit Suisse in 2023, according to several media reports on Sunday.
Shareholder Claims Over Risk Mismanagement
The settlement follows a series of lawsuits brought by shareholders in New York, who accused Credit Suisse leadership of ignoring glaring weaknesses in risk management during the years leading up to the bank’s downfall.
Credit Suisse suffered heavy losses in 2020 and 2021 linked to the collapses of Archegos Capital Management and Greensill Capital, which exposed lapses in internal oversight and due diligence.
A New York judge has granted preliminary approval to the settlement, with final approval expected later this year. The executives have not admitted any wrongdoing.
No Admission of Guilt
While some media have framed the deal as a «fine,» the payment is technically a civil settlement rather than a regulatory penalty. The managers avoid a formal admission of liability, but the financial consequences underscore the depth of the bank’s mismanagement.
Swiss commentators noted that the case highlights how trust, rather than capital, ultimately determines the fate of a financial institution. The downfall of Credit Suisse, once considered one of Switzerland’s financial crown jewels, has become a cautionary tale for global banking.
Broader Legal Fallout
The $115 million settlement comes on top of other legal repercussions tied to Credit Suisse’s past scandals. Earlier this year, Swiss authorities fined a former Credit Suisse risk and compliance officer 100,000 francs for failing to promptly report suspicions of money laundering in the Mozambique tuna bonds affair.
Taken together, these cases illustrate how years of weak governance, cultural failures, and excessive risk-taking culminated in the historic collapse of Credit Suisse and its emergency takeover by UBS.
What It Means for UBS
For UBS, which now carries the legacy of its defunct rival, the settlement marks another step in unwinding Credit Suisse’s troubled past. Analysts say the payment is modest compared to the tens of billions UBS has already absorbed in restructuring costs, but it underscores the reputational damage left behind by Credit Suisse’s leadership failures.
As UBS integrates the remnants of Credit Suisse, observers warn that the episode may accelerate calls for tighter regulation of global systemically important banks, particularly around risk culture and accountability at the board level.
