Credit Suisse Group reaches settlement in French legacy case
Credit Suisse announced today that it has reached a settlement with the Parquet National Financier (PNF) to resolve a legacy matter in relation to an investigation into historical cross-border private-banking services. The settlement provides for a public interest fine comprising a profit disgorgement of EUR 65.6 million and the payment of an additional amount of EUR 57.4 million. Further Credit Suisse will pay EUR 115 million to the French State as damages.
The settlement does not comprise a recognition of criminal liability. The bank is pleased to resolve this matter, which marks another important step in the proactive resolution of litigation and legacy issues.
Credit Suisse Group Reaches Settlement in RMBS Legacy Case
Credit Suisse Group announces today that it has reached a final settlement with the New Jersey Attorney General (NJAG) related to its Residential Mortgage-Backed Securities (RMBS) business with transactions dating back to before 2008.
Under the terms of the settlement, Credit Suisse will make a one-time payment of USD 495 million to fully resolve claims tied to more than USD 10 billion of RMBS at issue, for which the NJAG had alleged over USD 3 billion in damages in a litigation case filed in 2013.
Credit Suisse is pleased to have reached an agreement that allows the bank to resolve the only remaining RMBS matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket. The settlement, for which Credit Suisse is fully provisioned, marks another important step in the bank’s efforts to pro-actively resolve litigation and legacy issues.
Credit Suisse Group appoints Axel P. Lehmann as new Chairman; António Horta-Osório has resigned
Credit Suisse Group announced yesterday that the Board of Directors (Board) has appointed Axel P. Lehmann as the bank’s new Chairman effective immediately. He succeeds António Horta-Osório, who resigned following an investigation commissioned by the Board. Under the leadership of Axel Lehmann, the Board and the Executive Board will continue to execute Credit Suisse’s strategy, driving forward the transformation of the bank.
Mr. Horta-Osório said: “I have worked hard to return Credit Suisse to a successful course, and I am proud of what we have achieved together in my short time at the bank. Credit Suisse’s strategic realignment will provide for a clear focus on strengthening, simplifying and investing for growth. I am convinced that Credit Suisse is well positioned today and on the right track for the future. I regret that a number of my personal actions have led to difficulties for the bank and compromised my ability to represent the bank internally and externally. I therefore believe that my resignation is in the interest of the bank and its stakeholders at this crucial time. I wish my colleagues at Credit Suisse every success for the future.”
Severin Schwan, Vice-Chairman and Lead Independent Director of the Board of Credit Suisse, said: “We respect António’s decision and owe him considerable thanks for his leadership in defining the new strategy, which we will continue to implement over the coming months and years. Axel Lehmann as the new Chairman, with his extensive international and Swiss industry experience, is ideally suited to drive forward the strategic and cultural transformation of the bank. We wish Axel every success in his new role and António all the best for the future.”
Axel Lehmann in office as new Chairman
Following his appointment by the Board, Axel Lehmann has taken office as Chairman. The Board will also propose him for election as Chairman at the upcoming Annual General Meeting on April 29, 2022.
Axel Lehmann, Chairman of Credit Suisse, said: “I would like to thank the Board for the trust it has placed in me and look forward to working even more closely with the Board and the Executive Board. We have set the right course with the new strategy and will continue to embed a stronger risk culture across the firm. By executing our strategic plan in a timely and disciplined manner, without distraction, I am convinced that Credit Suisse will demonstrate the renewed strength and business focus needed to generate sustainable value for all of our stakeholders.”
Axel Lehmann was elected as a member of the Board of Directors of Credit Suisse Group by the Extraordinary General Meeting held on October 1, 2021 and also became the Chair of the Risk Committee. He was formerly a member of the Group Executive Board of UBS Group, initially as Group Chief Operating Officer and then as President Personal & Corporate Banking and President UBS Switzerland. Between 2009 and 2015, Mr. Lehmann served as a non-executive director and a member of the Risk Committee of UBS Group and was a member of the Governance and Nominating Committee from 2011 to 2013.
His career at Zurich Insurance Group spanned almost 20 years, nearly 14 of which were as a member of the Group Executive Committee in various roles. These include responsibility for the insurer’s European and North America business, group IT and as Chief Risk Officer.
Mr. Lehmann currently holds mandates at several academic and non-profit institutions, including serving as an adjunct professor at the University of St. Gallen. He holds a PhD in Business Administration from the University of St. Gallen and is a graduate of the Advanced Management Program of the Wharton School, University of Pennsylvania, USA. Mr. Lehmann is a Swiss citizen.
Credit Suisse Group announces appointments to the Executive Board in line with its new strategy
Credit Suisse Group today announces the appointment of Francesco De Ferrari as CEO of the Wealth Management division. He will join the Executive Board of Credit Suisse Group, effective January 1, 2022, reporting to Group Chief Executive Officer Thomas Gottstein. Francesco De Ferrari has also been appointed as ad interim CEO of Europe, Middle East and Africa (EMEA) region. Christian Meissner, CEO of the Investment Bank division, has been appointed as CEO of the Americas region. In addition, Helman Sitohang and André Helfenstein have been appointed as CEOs of the APAC and Switzerland regions, respectively. Further, Mark Hannam has been named as Head of Internal Audit. Finally, Credit Suisse announces a new Board of Directors model structure to enhance the effectiveness and governance of the subsidiary Boards.
The new appointments are in line with the Group’s new strategy and organizational structure, as announced in November 2021, which is designed to move Credit Suisse to a matrix organization to allow for the best possible implementation of the strategy of strengthening, simplifying and investing for growth.
From January 1, 2022, the Group will be organized into four business divisions – Wealth Management, Investment Bank, Swiss Bank and Asset Management – and four geographic regions – EMEA, Americas, Switzerland and APAC, with the following leadership:
Business divisions
Geographic regions
Wealth Management – Francesco De Ferrari
Investment Bank – Christian Meissner
Swiss Bank – André Helfenstein
Asset Management – Ulrich Körner
EMEA – Francesco De Ferrari (ad interim)
Americas – Christian Meissner
Switzerland – André Helfenstein
APAC – Helman Sitohang
Philipp Wehle, who has served as CEO of International Wealth Management (IWM) since 2019, will be appointed CFO of Wealth Management and Head Client Segment Management Global Wealth. He will work closely with Francesco De Ferrari.
As a consequence of re-establishing two global divisions (Wealth Management and Investment Bank) and emphasizing our quest to further simplify our structure, we have taken the decision to reintegrate parts of the Sustainability, Research & Investment Solutions (SRI) organization into the global business divisions, namely IS&P into Wealth Management and Research into Investment Bank. As a result of these changes, Lydie Hudson will step down from the Executive Board and will leave Credit Suisse after a transition period. The Executive Board would like to thank her for her contribution as a trusted and valued colleague and partner for nearly 14 years.
António Horta-Osório, Chairman of the Board of Directors, said: “I am delighted to welcome Francesco to his new role. He joins with an impressive track record and a profound knowledge of Credit Suisse and the industry, reinforcing our Executive Board at this critical junction in our journey. He will undoubtedly play a crucial role in delivering on the Group’s new strategy, towards a much stronger, more client-centric bank, with leading global businesses and regional franchises. Risk management will be at the core of all our actions, with the Board of Directors and the Executive Board together driving a culture that reinforces the importance of accountability and responsibility across the entire bank. At the same time, I would also like to thank Lydie and Philipp for their excellent contributions to the bank in their respective roles over such a significant period of time.”
Thomas Gottstein, Group CEO, said: “We are delighted to welcome Francesco back to Credit Suisse as CEO of the global Wealth Management division. As we look to build on our existing strengths and accelerate growth in key strategic business areas, Francesco brings over 24 years of experience in wealth management, asset management and investment banking, thereof 17 years in executive roles at Credit Suisse across the Asia Pacific and EMEA (including Switzerland) regions. He will also ensure an orderly implementation of the new business structure in his ad interim role as CEO of the EMEA region. With these appointments, as well as the appointment of Christian as CEO of the Americas region, the bank’s new divisional and regional structure is now complete and I am looking forward to working with all my Executive Board colleagues on executing our new strategy from January 1, 2022. I would like to thank Lydie, who worked in global roles across the firm and ultimately launched and led SRI. She will leave an indelible mark on the organization and with our clients. Spearheading programs like the Global Women’s Financial Forum and Sustainability Week, she has enabled our clients and employees to participate in our efforts to become a more inclusive and sustainable firm. She is a champion of diversity and a trusted colleague. We look forward to working with Lydie through the transition period and wish her well for the future. At the same time, I would like to expressly thank Philipp for his contribution in driving Wealth Management growth for Credit Suisse over the past years. Under his leadership, we have made significant progress in establishing the bank as one of the world’s leading wealth managers with market-leading franchises in UHNW and HNW. We are fortunate and privileged to be able to count on Philipp’s continued support in his new role.”
Francesco De Ferrari is joining Credit Suisse from AMP Ltd., where he was CEO from December 2018 to June 2021, overseeing a portfolio of businesses ranging from life insurance to asset management products, pensions and banking, as well as joint ventures across China and the US. Previously, he worked for Credit Suisse Group from 2002 to 2018, and he held a number of senior roles including Head of Private Banking APAC and CEO of South East Asia and Frontier Markets. Between 2008 and 2011, Francesco De Ferrari held the role of CEO Private Banking Italy, after previously serving as Business Chief Operating Officer for Private Banking EMEA. Between 2002 and 2006, he held various roles at Credit Suisse in Italy including Chief Operating Officer for the country. Between 1990 and 2001, he worked for various companies such as Nestlé and McKinsey in different roles.
Francesco De Ferrari holds an MBA from INSEAD as well as a BA in Economics and International Business from the New York University Stern School of Business. He will be based in Zurich and will report directly to Group CEO Thomas Gottstein.
David Wildermuth will join Credit Suisse and the Executive Board as Chief Risk Officer effective January 1, 2022, a month earlier than previously announced, while Joanne Hannaford will take over from James B. Walker as Chief Technology and Operating Officer at the same time. As previously communicated, Christine Graeff will take over from Antoinette Poschung as Global Head of Human Resources on February 1, 2022 and will join the Executive Board at such time. All other Executive Board members will maintain their respective roles.
The full new Executive Board composition, effective January 1, 2022, can be seen here: https://www.credit-suisse.com/media/assets/about-us/docs/our-company/our-management/211213-exb-org-chart.pdf
Credit Suisse today also appointed Mark Hannam as Head of Internal Audit. He will join on April 1, 2022, reporting directly to Richard Meddings, Chair of the Audit Committee. He joins Credit Suisse from PricewaterhouseCoopers (PwC), where he served as a Partner for the past two decades. He most recently had an oversight role for audit quality across a number of PwC firms within its international network. During his career, he provided audit or advisory services for a number of systemically important financial services companies, while also working with a number of US Securities and Exchange Commission Foreign Registrants as audit clients or in an advisory capacity.
Richard Meddings, Chair of the Audit Committee, said: “I am delighted to welcome Mark to Credit Suisse. He joins with an impressive track record in making sure that risk management, governance and internal control processes are operating effectively. It is a crucial role and his skills and background will be invaluable in contributing to shaping and implementing the bank’s new strategy and risk culture going forward.”
Subsidiary and regional Boards of Directors appointments
Credit Suisse also announced the reshaping of its main regional subsidiary and advisory Boards’ composition whereby a member of the Group Board of Directors will become the Chair of each of the Group’s main regional subsidiary and advisory Boards.
António Horta-Osório, Chairman of the Board of Directors, said: “By increasing the connectivity between the Group Board and our main regional subsidiary and advisory Boards, Credit Suisse should achieve a greater alignment between regions and business divisions, enhancing its ability to accelerate the embedding of a culture focused on risk management, responsibilities and accountability globally. I would also like to take this opportunity to thank Peter Derendinger, John Devine and Bruce Richards for their very valuable contributions as Chairs of the Boards of Credit Suisse (Schweiz) AG, Credit Suisse International and Credit Suisse Securities (Europe) Ltd. as well as Credit Suisse Holdings (USA), Inc., respectively.”
An additional three subsidiary and advisory Boards were recently approved for elevation to the so-called “Category 1” level, which introduces enhanced oversight and governance between the Group Board and our main regional Boards, i.e. the APAC Board, the Credit Suisse Bank (Europe), S.A. Board and the Brazil Advisory Board have been elevated, resulting in six regional Boards of strategic importance. Along with the previously announced appointment of Ana Paula Pessoa to Chair of the Brazil Advisory Board, Credit Suisse today announced and confirmed the following members of the Group Board of Directors as Chairs of the respective subsidiary and regional Boards, effective from January 1, 2022, unless mentioned otherwise:
Juan Colombas1 – Credit Suisse Bank (Europe), S.A.
Christian Gellerstad2 – Credit Suisse (Schweiz) AG
Blythe Masters – Credit Suisse Holdings (USA), Inc.
Richard Meddings1 – Credit Suisse International and Credit Suisse Securities (Europe) Ltd. (in the UK)
Kai Nargolwala3 – Credit Suisse Asia Pacific
Ana Paula Pessoa – Credit Suisse Brazil
Furthermore, a new Group Board Committee, the Digital Transformation and Technology Committee, is being established, effective January 1, 2022. It will be chaired by Blythe Masters. This Group Board Committee will provide direct oversight and governance on key technology and digitalization topics and replace the current Innovation and Technology (Advisory) Committee. In order to dedicate her full attention to her new responsibilities, Blythe Masters will step down from both the Risk and Compensation Committees.
Finally, the Group Board of Directors will, over time, move to a composition with a maximum of 12 members, despite these additional responsibilities.
1 Appointment subject to regulatory approval.2 Appointment subject to re-election at AGM of Credit Suisse (Schweiz) AG (effective April 2022).3 Appointment effective April 2022, subject to re-election at the Group 2022 AGM. The APAC Board is an advisory body overseeing business conducted through a number of Credit Suisse legal entities and branches in the APAC region.
Appointments to the Executive Board of Credit Suisse Group: Christine Graeff as Global Head of Human Resources and Rafael Lopez Lorenzo as Chief Compliance Officer
Credit Suisse Group AG announced two internal appointments to the Executive Board of Credit Suisse Group.
Christine Graeff is appointed Global Head of Human Resources. She succeeds Antoinette Poschung who is retiring by the end of January 2022, entitled to her statutory retirement. Christine has been Global Head of Communications and Deputy Global Head of Human Resources since joining Credit Suisse at the beginning of the year. She will hand over Communications to her successor, for whom a search is ongoing. Christine will fully take over HR as per February 1, 2022 at the latest ensuring a smooth handover. Christine has a track record of leading transformations and has reshaped the Communications function since joining Credit Suisse. Her leadership and people skills together with her communications expertise will be key in leading the HR function through their essential part in delivering on Credit Suisse’s strategic objectives.
Rafael Lopez Lorenzo is appointed Chief Compliance Officer. Rafael is currently Global Head of Group Internal Audit. He will take over from Thomas Grotzer who, as previously communicated, led the function on an ad interim basis since April 2021, effective October 1, 2021. Rafael joined Credit Suisse in 2015 from JP Morgan Chase. He has a background in audit and banking. His track record in building and maintaining a leading Internal Audit team, in transforming and innovating its operating model as well as in building a strong bench of audit leaders has contributed to the stature of the function. His leadership, experience and deep understanding of the bank’s processes and challenges in the third line of defense will be key in leading the future Compliance function. In addition, Rafael has played a pivotal role in the review of recent incidents.
Both Christine and Rafael will join the Executive Board effective by February 1, 2022 at the latest, and October 1, 2021, respectively, reporting directly to the Group Chief Executive Officer, Thomas Gottstein.
António Horta-Osório, Chairman, and Thomas Gottstein, Group CEO commented on the appointments: “We congratulate Christine and Rafael on their new roles. Both have delivered excellent results and have strong management track records in leadership positions. These two appointments reflect the talent in Credit Suisse and the diversity of backgrounds and experience in our bank. They will both contribute to shaping and implementing the strategy of the bank going forward. We would like to specifically thank Antoinette for her invaluable contributions as a leader, which deserves particular recognition. She has provided exceptional support to the bank for 18 years in various positions and through challenging times. We would also like to thank Thomas for taking on the role of interim Global Head of Compliance in these challenging conditions.”
Since 2013, prior to joining Credit Suisse, Ms. Graeff was the Director General of Communications at the European Central Bank. Between 2001 and 2013, she was Managing Partner in the strategic communications firm, Brunswick, where she set up and developed the group’s German business, with a particular focus on the financial sector. Prior to that, she was at Burson-Marsteller in London. She started her career as an investment banker at Kleinwort Benson after graduating from the European Partnership of Business Schools, where she studied European Business Administration. She was awarded an honorary doctorate from Middlesex University in 2015.
Prior to joining Credit Suisse’s Internal Audit team in 2015, Mr. Lopez Lorenzo was a Managing Director in the Investment Bank, Operations, Technology and Change at JPMorgan Chase in New York and earlier in Sao Paulo. Previously, he was a Senior Associate Consultant at PricewaterhouseCoopers in the Global Risk Management Solutions in London where he focused on the Commercial and Industrial Products and Services and the electronic business. He developed his career in London, Chicago, New York, Sao Paulo and Zurich. He graduated from University of Huelva in Spain where he studied Economic Science and Business Administration and from the École Supérieure de Commerce de Paris (ESCP), where he received a Masters in European Business, graduating “with merit”.
Extraordinary General Meeting of Shareholders of Credit Suisse Group
Credit Suisse Group plans to hold its EGM on October 1, 2021 to elect two new members of the Board of Directors.
In light of the continuing exceptional circumstances due to the COVID-19 pandemic, the EGM will be held in accordance with the requirements of Ordinance 3 of the Swiss Federal Council regarding measures on combatting the Coronavirus.
The Board of Directors regrets that this event will therefore be held without the personal attendance of shareholders. Shareholders are requested to vote in advance by granting a power of attorney and issuing voting instructions to the independent proxy. The respective deadline is Tuesday, September 28, 2021.
At the EGM, the Board of Directors of Credit Suisse Group will propose the election of Mr. Axel Lehmann and Mr. Juan Colombas as members of the Board of Directors and the election of Mr. Colombas as a member of the Compensation Committee for a term until the end of the next Annual General Meeting. Subject to his election, the Board of Directors intends to appoint Mr. Lehmann as the new Chair of the Risk Committee.
The EGM will not be broadcast live. A media release containing the voting results will be published after the EGM and the minutes of the meeting will be available at: credit-suisse.com/egm.
A speech to shareholders by Mr. António Horta-Osório, Chairman of the Board of Directors, will be available from 10:30 a.m. (CEST) at: credit-suisse.com/egm
Changes to the Board of Directors of Credit Suisse Group
Andreas Gottschling has informed the Board that he will not stand for re-election at the Credit Suisse 2021 Annual General Meeting of Shareholders.
Accordingly, agenda item: 5.1.4. Re-election of Andreas Gottschling as a Member of the Board of Directors, becomes obsolete.