Taking Responsibility

Good Morning Ladies and Gentlemen

«The difficulty lies not in the new ideas but in escaping from the old ones.»

By John Maynard Keynes

Credit Suisse

What happened to Credit Suisse, you may ask? I have been pointing out for years that Credit Suisse, on the one hand, was selling its real estate, writing losses, and, on the other hand, paying out billions in bonuses. This outrageous greed of obviously highly incompetent managers starkly contrasted with the bank’s performance. As a Swiss citizen and former banker, I am amazed and saddened by the fall of this traditional bank.

Taking responsibility

The indignation is suddenly very great, and guilty parties are being sought everywhere. Of course, the top management of the past 20 years bears a great responsibility and, if you like, guilt. However, the fact is that every client is responsible and should, by default, question how excessive spending on salaries, bonuses, offices, and client events can be financed. I think clients have a responsibility to question the behaviour of their bankers. Therefore, this story also depresses me because seemingly naïve customers feel flattered when bank employees greet them in meeting rooms with thicker carpets than the customers’ wallets. It feels like in sixth-grade history class when we learned how the Spanish explorers sailed to Latin America and sold the natives glass beads for their gold reserves.

The media

Interestingly, in November 2022, the former Chairman of Credit Suisse’s Board of Directors was granted a multi-page interview in a Swiss weekend magazine. This magazine is clearly positioned left of the centre; nevertheless, no critical question was asked to the ex-Chairman of a large Swiss bank, under whom the stock lost 90% of its value. So I am asking myself what is the value of such an interview?

Enough

Excuse me, Ladies and Gentlemen; I had to get rid of these thoughts. Thanks for your understanding.

Ladies and Gentlemen, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.

Many thanks, indeed!

I wish you an excellent start to the day, a wonderful weekend, and above all, joy!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li