Tidjane Thiam received a questionnaire from the Parliamentary Investigation Committee regarding his leadership at Credit Suisse from 2015 to 2020. Although he provided written responses, he was not interviewed. Concerns were raised about the PUK’s approach, favoring written inquiries over direct consultations with key figures, which may have hindered a comprehensive understanding of the bank’s collapse. As the investigation progressed, it became clear that many members lacked banking expertise and familiarity with the extensive documentation.
Tidjane Thiam Responds to Parliamentary Investigation Committee
In March 2024, Tidjane Thiam received a communication from Bern, specifically from the Secretariat of the Parliamentary Investigation Committee (PUK). The correspondence contained a questionnaire pertaining to Thiam’s nearly six-year tenure as the leader of the former banking giant, Credit Suisse (CS).
Thiam’s spokesperson indicated that the PUK sought insights into his interactions with significant regulatory bodies, including the Federal Council, the Financial Market Supervisory Authority (Finma), and the Swiss National Bank (SNB) during his leadership from July 2015 to February 2020. The committee was particularly interested in how he collaborated with international regulators and the numerous requests from Finma regarding the bank’s restructuring. Despite these inquiries, Thiam was not invited for a verbal interview. His spokesperson mentioned that Thiam would have been eager to provide his personal insights, and he subsequently submitted written responses to the PUK as requested.
Concerns Over PUK’s Investigation Approach
Thiam was among several key figures involved in the final years of CS as an independent entity, many of whom were either questioned solely in writing or not at all, as indicated by findings from various insiders. The PUK’s preference for written inquiries, particularly concerning central figures at CS and some regulatory authorities, raises significant concerns. This is notably illustrated by the 2017 adjustments to capital requirements.
To recap, in 2017, Finma approved relaxed capital requirements for CS as a transitional measure towards stricter regulations. This included a regulatory filter that allowed CS to continue using its previous valuation method for its subsidiaries in Switzerland, impacting the equity ratio of the parent company. As a result, the equity reported for 2019 was inflated by 8 billion compared to what it would have been without the filter. The PUK’s report concluded that this filter played a role in exacerbating CS’s precarious situation, limiting the authorities’ ability to manage the crisis effectively.
Despite this, key experts such as David Mathers, the long-serving CFO of CS, were not consulted by the PUK for their insights, leaving a gap in understanding the intricacies of the bank’s financial data. Furthermore, it was noted that specialists from Finma were often only questioned in writing, with significant topics like the filter receiving minimal attention during interviews. This leads to the question: why did the PUK fail to engage critical individuals on such a pivotal issue?
The PUK’s mandate was strictly defined, focusing on the relationship between state authorities and the collapse of CS, which did not include an in-depth investigation into the bank itself. However, achieving a comprehensive understanding of the authorities’ interactions in the CS crisis necessitated a thorough exploration of the events within the bank leading up to its downfall.
As the PUK began its work in the summer of 2023, members were aware of the sensitive nature of the investigation. The PUK Secretariat sought extensive documentation from various authorities, including Finma and the Federal Department of Finance, while also gathering substantial information about CS’s internal events. Support from UBS, the new owner of CS, was reportedly also available to the PUK.
The atmosphere within the PUK was described as constructive, with a consensus that the final report should be unanimously approved. Most discussions were conducted in German, and while some members were more active than others, leadership was primarily attributed to President Isabelle Chassot and a few other key members.
By October 2023, the PUK commenced oral interviews. However, many members had not yet familiarized themselves with the extensive documentation—over 30,000 documents in total. This lack of preparation became evident during the interviews, where the questions posed were often overly broad and general.
Notably, only one member had a solid banking background—SVP politician Thomas Matter, who has experience from his time at UBS and Merrill Lynch. The PUK operated under a typical Swiss militia system, where members juggled their PUK duties alongside other professional responsibilities, leading to a situation where the financial compensation did not reflect the time commitment required.