Library of Mistakes EP 38: Meltdown – Scandal, Sleaze And The Collapse of Credit Suisse (with Duncan Mavin)
11 snips
May 13, 2025 
In this engaging discussion, Duncan Mavin, author of 'Meltdown', reveals the tangled history of Credit Suisse, marked by scandals and a toxic corporate culture dating back to WWII. He delves into the bank's questionable practices and risky investment strategies that led to its dramatic downfall. Mavin also explores the fierce rivalry with UBS and the ethical dilemmas faced by executives during crises. Finally, he highlights how journalism played a crucial role in igniting public fears that precipitated the bank’s collapse.
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WWII Bank Secrecy Foundations
- Credit Suisse's culture of secrecy began in WWII with bank secrecy laws protecting Nazi and Holocaust victims' assets.
- This secrecy enabled unethical practices like hiding money and refusing rightful claims, embedding amorality in the bank's culture.
Legalistic Culture Causes Combative Tone
- Credit Suisse’s combative stance with foreign regulators became entrenched partly due to its chairman's legal background.
- This adversarial approach prolonged scandals and sent signals to staff to resist acknowledging wrongdoing.
Risky Chase to Catch Competitors
- Credit Suisse adopted risky, innovative strategies to catch up with top banks internationally.
- This culture attracted employees willing to take on ethically dubious, fast-paced, high-risk work.