Credit Suisse shareholders gather at annual meeting to demand answers over UBS rescue

cnbc.com:

Shareholders are gathering at Credit Suisse's annual general meeting Tuesday to demand answers and accountability over its controversial takeover by UBS.

A police presence was established early Tuesday at the venue as shareholders began arriving in droves.

Swiss authorities brokered an emergency rescue of the stricken bank by its larger domestic rival for just 3 billion Swiss francs, over the course of a weekend in late March. It followed a collapse in Credit Suisse's deposits and share price amid fears of a global banking crisis, but the deal remains mired in legal and logistical challenges. Neither UBS nor Credit Suisse shareholders were allowed a vote on the deal.

In a statement Sunday, the office of the attorney general confirmed that Switzerland's Federal Prosecutor is investigating potential breaches of Swiss federal law by government officials, regulators and top executives at Credit Suisse and UBS.

Both banks declined to comment on Monday.

Commentators have highlighted the importance of the deal's success for Swiss authorities against a febrile political backdrop. The lack of input from shareholders, bondholders and Swiss taxpayers in UBS' acquisition of its embattled rival has sparked widespread anger.

Speaking outside the annual meeting, Vincent Kaufmann, CEO of Ethos Foundation which represents pension funds comprising between 3% and 5% of Credit Suisse shareholders, told CNBC that they had «lost a lot of money» and «need to know what management is doing.»

Potential courses of action include «trying to retrieve some of the viable pay that was granted for former management, who may have failed in their duties to protect shareholders' interests,» he said.

«We're still looking for possibilities — it's quite