New Books in Economics

Duncan Mavin, "Meltdown: Scandal, Sleaze and the Collapse of Credit Suisse" (Pegasus Books, 2024)

Jan 19, 2025

Duncan Mavin, a seasoned financial reporter and author of "Meltdown: Scandal, Sleaze and the Collapse of Credit Suisse," dives deep into the rise and fall of the iconic bank. He reveals how a toxic corporate culture fueled scandals and greed, ultimately leading to its collapse in 2023. Mavin discusses the tangled history of Swiss banking secrecy and the impact of leadership failures on trust. He also raises vital questions about the future of big banks amidst demands for transparency and accountability in the finance world.

39:25

Episode guests

Duncan Mavin

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Quick takeaways

Credit Suisse's downfall was driven by a toxic culture of greed and entitlement, compounded by leadership instability and frequent scandals.

The podcast stresses the need for robust regulatory oversight to restore trust and accountability in the financial industry amidst systemic issues.

Deep dives

The Rise and Fall of Credit Suisse

The history of Credit Suisse illustrates a complex evolution from a revered Swiss banking institution to its eventual collapse in 2023. Key moments, such as the merger with First Boston, are identified as critical turning points that accelerated underlying issues within the bank. This merger not only blended the cultures of two entities, one rooted in Swiss banking secrecy and the other in Wall Street's aggressive nature, but it also compounded risks that would bubble to the surface over time. The transformation from a stable financial entity to one riddled with scandals defined the bank's trajectory, hinting at the seeds of its downfall much earlier than its final collapse.

Intro

2min

Credit Suisse: A Cautionary Tale

17min

Themes of Leadership, Culture, and Trust in Banking

5min

Corporate Culture and Ethical Failures at Credit Suisse

10min

Exploring Workplace Misconduct and Future Scandals in Finance

3min

Meltdown: Scandal, Sleaze and the Collapse of Credit Suisse (Pegasus Books, 2024) is a great business history book. It meticulously chronicles the story of a large and once revered Swiss Bank, Credit Suisse, from its foundation in 1856 until how a series of scandals, driven by a culture of greed and entitlement among its bankers, led to the bank´s ultimate collapses in March 2023. The narrative also explores the bank's international expansion, particularly its partnership with First Boston in the United States.

Meltdown is not just a history of Credit Suisse but a broader investigation into the systemic issues of greed, lies, and ambition that plague the financial industry. It raises critical questions about the future of big banks in a world where transparency and accountability are increasingly demanded.

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