Credit Suisse shareholders get last crack at annual meeting ahead of UBS merger

Credit Suisse is likely to face a massive firestorm on Tuesday by investors in its annual meeting before merger with UBS Group. The managers have been facing backlashes already over the falling stock prices, however, it would be the last as the UBS group will be coming to the rescue of the 177 year old bank. 

The long thriving Swiss bank started falling from 2008 economical crisis and could never see the recovery. The continuous decline of Credit Suisse convinced depositors to gradually take out their money from the bank. The collapse of two major banks in the United States last month sent shockwaves across the banks around the world. The fear of more collapses were felt strongly, thus, Swiss government sold out the deal to UBS group, which managed to survive the 2008 economic crisis, for $3.25 bn. 

The bank's annual meeting was held online since the start of global pandemic in 2020. This year's meet is to be held in Zurich hockey stadium which will also have artist Post Malone and former U.S. President Barack Obama. Over the years, Credit Suisse made massive mistakes including several bets on hedge funds, unable to stop its employees from helping a cocaine launder and keeping American wealthy accounts away from tax paying. In 2007, the shares went as high as 88 Swiss Francs to now trading around mere 80 cents, Credit Suisse is a story of tremendous fall. 

The merger will also lead to a certain amount of job cuts, thus, the protesters are expected to be present in Zurich opposing the decision. Shareholders didn't get a chance to vote on the merges as the government had to push it on an urgent basis will also be likely protesting. Moreover, the Swiss government has launched a probe in the alleged wrongdoings of the bank ahead of the takeover. 

Those shareholders who oppose the transaction will be unlikely to waste their time" coming to the meeting, said Octavio Marenzi, CEO of consulting firm Opimas LLC. They will have to fight this through the courts.

Credit Suisse shareholders collectively will get 3 bn Francs in the combined company, while investors holding about 16 bn Francs (USD 17.3 billion) in higher-risk Credit Suisse bonds were wiped out.

(With inputs from PTI)