Swiss bank Credit Suisse financed bonuses and dividends through debt, the German-language newspaper SonntagsZeitung reported on Sunday.
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Credit Suisse managers and shareholders withdrew CHF32 billion ($36 billion) from the company over ten years despite the lack of profits, according to the newspaper, which cited previously unpublished reports.
Under the management of Tidjane Thiam and Urs Rohner in particular, the bank actually had too little capital to pay out dividends and bonuses, according to the newspaper.
The capital losses stemmed in part from the overpaid purchase of the US bank DLJ in 2000, meaning that money was pumped into the holding company from subsidiaries.
Later, those responsible also resorted to high-yield bonds (AT1, also known as contingent convertibles). These were partly used to finance the holding company’s payments and partly to enable the subsidiaries to increase their capital.
Credit Suisse collaposed in March 2023. Switzerland is waiting for a parliamentary inquiry report to reveal who was at fault as the bank disintegrated.
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