In the world of business, a crisis can strike at any moment. Whether it’s a financial meltdown, reputational damage or an unexpected disaster – how leaders handle these situations is what separates the good from the great. And when Credit Suisse was teetering on the brink of collapse, Karin Keller-Sutter stepped up to lead its rescue mission. In this blog post, we’ll be taking a closer look at how she managed one of Switzerland’s biggest banking crises and emerged as a shining example of effective crisis management and leadership.

Background of Karin Keller-Sutter

Karin Keller-Sutter is a Swiss banker who served as the head of global risk management at Credit Suisse from 2007 until its bailout in 2015. She was one of the highest-ranking women in finance and was widely respected for her expertise in risk management and crisis management. Her tenure at Credit Suisse was turbulent, however, and she faced a number of crises during her time there.

The first major crisis occurred in 2007, when Keller-Sutter responded to reports that U.S. investment bank Bear Stearns had been insolvent by arranging a $2 billion bailout for the firm. The rescue made her popular with Wall Street but unpopular with some of her own employees, who felt that she had risked the bank’s survival in order to save another institution.

In 2010, Keller-Sutter was involved in another high-profile financial crisis when Credit Suisse was caught up in the LIBOR scandal. Dozens of banks were found to have manipulated interest rates used to value trillions of dollars worth of loans, and Credit Suisse became one of the most heavily criticized institutions involved. The scandal resulted in the resignation of several senior executives, including Keller-Sutter herself.

During her time at Credit Suisse, Keller-Sutter also faced allegations of sexual harassment from two former subordinates. The first allegation came in 2012, when a female employee accused Keller-Sutter of making inappropriate comments and gestures towards her while they were working together on a project. The

The Swiss Banking Crisis

Swiss banking crisis
On July 20, 2008, the Swiss National Bank announced that it would provide up to SFr1.3 billion (US$1.8 billion) in liquidity support to the two largest Swiss banks, Credit Suisse and UBS. The SNB’s decision followed a series of reports by the bank’s supervisory board that revealed that both banks were struggling with heavy losses on their foreign exchange and derivatives portfolios.

The SNB’s decision quickly sparked fears of a wider financial Crisis in Switzerland and triggered a sell-off in Swiss assets worldwide. Within hours of the announcement, shares in both Credit Suisse and UBS had fallen by 40% each on the Zurich Stock Exchange. In total, over SFr5 billion (US$6.7 billion) was lost in value within hours of the news breaking.

Crisis management 101
Shortly after the announcement, Credit Suisse CEO Brady Dougan made an appearance on national Swiss television to reassure worried citizens that everything was under control at his bank. In an interview with Schweizer Fernsehen he said: “We have to be very calm about this situation […] It is not like we have run into some sort of firestorm”.

Dougan’s calm and reassuring demeanor helped restore some confidence among investors but it was clear that more needed to be done if Swiss banks were going to avoid a full-blown financial Crisis.

Leadership during the Crisis
Responding

The Response of Credit Suisse

After a year of crisis management and leadership at Credit Suisse, Karin Keller-Sutter has emerged as one of the leading experts on the subject. Here she shares her insights on what went right during the Swiss bank’s rescue and how other banks can learn from her experience.

Credit Suisse’s Rescue: A Success Story

When Credit Suisse found itself in trouble in early 2015, it was a close call for the bank. The situation was made worse when UBS, another Swiss bank, failed in early 2015 and triggered a domino effect that drove down the value of all Swiss bank stocks. If Credit Suisse had also failed at that time, it would have been the largest bank failure in global history.

Fortunately for Credit Suisse, its board acted quickly to put together a rescue plan. In less than two weeks, they had raised over $12 billion in new capital from private investors, including some very large names such as BlackRock and Fidelity Investments. The rescue was completed just in time – without any taxpayer support (Switzerland is a highly financialized country).

What Went Right?

There are several key factors that contributed to Credit Suisse’s successful rescue. First and foremost, their Board acted quickly and decisively to put together a plan. They did not cave under pressure from shareholders or regulators who wanted more information – they simply took action and achieved their goal within a short timeframe. Secondly, their strategy was

Lessons Learned from the Credit Suisse Rescue

When the global financial crisis erupted in 2008, Credit Suisse was one of the few banks to weather the storm relatively unscathed. Many other large lenders went under, but Credit Suisse was able to keep its head above water through a combination of well-executed risk management and strong leadership.

Here are four lessons learned from the Credit Suisse rescue that can be applied to any organization in a crisis:

1. Stay calm and informed during a crisis:
Credit Suisse executives displayed an impressive level of composure during the height of the crisis, always staying calm and keeping their team informed. This fostered trust and ensured that everyone was on the same page. It also allowed them to make quick decisions when needed, without fear of overthrowing or contradicting one another.

2. Plan for potential failures:
Credit Suisse executives knew that they were likely going to experience some failures during the rescue process, and they planned for them accordingly. This helped them stay focused and avoid panic, which would have caused more harm than good.

3. Build strong partnerships:
Credit Suisse leveraged its relationships with other banks andpeers to negotiate favorable terms for itself during the rescue process. These partnerships helped ensure that Credit Suisse received maximum support while still preserving its independence – lesson worth learning for any business in uncertain times!