Business Case Studies & Business Publications

The End of Credit Suisse

Allayannis, George...

Case

The End of Credit Suisse

Allayannis, George (Yiorgos); Markovic, Boban; Yemen, Gerry

F-2064 | Published December 20, 2023 | 36 pages Case

Collection: Darden School of Business

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The case describes the demise of Credit Suisse Group AG (Credit Suisse), along with Credit Suisse's history and its significance for global markets and Switzerland. The case examines key episodes during the past 15 years that point to risk-management lapses, weak corporate governance, and ineffective restructurings. The case also discusses Credit Suisse's financial performance, capital and liquidity metrics over time, and its CEOs' efforts to alter its course. Finally, the case describes the reaction of the Swiss regulators during the final hours, the forced merger of Credit Suisse with UBS Group AG (UBS), and the potential impact of a bankruptcy on global markets and Switzerland. Given Credit Suisse's status as one of 30 systemically important financial institutions (SIFIs) globally, its demise opens questions related to the efficacy of regulation after the global financial crisis (GFC), the role of regulators, and bank corporate governance. Ultimately, this case asks, "What are the lessons we can learn from Credit Suisse's demise?" in hopes that they won’t be repeated.

• To understand the causes of Credit Suisse's demise • To delve into areas of a bank's risk management, corporate governance, and bank strategy • To explore alternatives that might have saved Credit Suisse • To understand the role and actions of the Swiss regulators during Credit Suisse's final hours and the implications of its demise for Switzerland