Weekly Global News Wrap: Credit Suisse chairman apologises to shareholders; EU banks must be “conservative” with dividends, payouts
And JPMorgan Chase & Co CEO Jamie Dimon said banking crisis not yet over.
Credit Suisse’s chairman has apologised for taking the bank to the brink of bankruptcy in the bank’s final shareholder meeting that also marked the end of the 167-year-old lender.
Chairman Axel Lehmann issued an apology to the nearly 2,000 shareholders in attendance, saying he had run out of time to turn the bank around.
"I am truly sorry," Lehmann said. "I apologise that we were no longer able to stem the loss of trust."
"Credit Suisse with its long and rich history is now taking a historic turn, we deeply regret this and, personally, this moment also makes me sad," he added.
Banks in the European Union must be "conservative" with dividends and other payouts after recent turmoil in the sector, and focus on keeping their cash buffers topped up, the European Union's banking watchdog has told Reuters.
Jose Manuel Campa, chair of the European Banking Authority, said banks had strong capital and liquidity buffers, with a key measure of profitability now at a decade high.
But it was unclear how rapidly rising interest rates will ultimately affect the economy and customers of banks, he said.
"The impact will come for sure," Campa told Reuters. "That impact we will continue to monitor."
The US banking crisis is not yet over and its impact will be felt for years, warned JPMorgan Chase & Co CEO Jamie Dimon in a letter to shareholders sent out on 4 April.
"The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come," Dimon wrote in a 43-page annual message covering a range of topics from JPMorgan's performance to geopolitics and regulation.
Dimon noted that the banking system is under renewed stress after the failure of Silicon Valley Bank and Credit Suisse's rescue by UBS last month.