Last week, the Silicon Valley bank "thunderbolt" announced the bankruptcy of a global sensation, an instant, the banking industry has become the focus of global market attention。In response, U.S. regulators have also opened investigations into some banks over concerns。Credit Suisse Group AG said it was pursuing a new plan to address "material weaknesses" in reporting and control procedures over the past two years after last week's review of its financial statements in response to concerns raised by US regulators.。

Credit Suisse reported "significant defects" in its earnings in the past two years.

Credit Suisse said in its annual report published on Tuesday that for 2021 and 2022, "the group's internal control over financial reporting was ineffective."。Management has therefore indicated that our disclosure controls and procedures are not effective。The bank said the significant deficiencies identified were related to a failure to design and maintain an effective risk assessment in its financial statements.。

While reassessing the bank's internal controls, PricewaterhouseCoopers issued a "dissenting opinion" on the effectiveness of the group's internal controls.。Still, Credit Suisse said its 2022 and 2021 statements were a "fairly realistic" reflection of its financial health.。

Credit Suisse was forced to delay the release of its annual report from last week after the Securities and Exchange Commission raised final questions about its cash flow statements for 2019 and 2020.。Ulrich Koerner, the bank's chief executive, is trying to push through a complex restructuring to get the bank back to profitability as soon as possible, a process that threatens to sink into a broader financial sector sell-off tied to Bank of America's Silicon Valley bank.。

The bank said its material weaknesses played a role when some of its statements from past years were revised a year ago.。Credit Suisse said its efforts to address the issue "may require us to spend significant resources to correct significant weaknesses or deficiencies."

In 2021, Credit Suisse suffered billions of dollars in losses related to Archegos Capital Management, a family office with ties to investor Bill Hwang.。A report was subsequently released, pointing to a procedural flaw that led to the crash。Since then, the bank has also completely reshuffled its top management and is implementing its second restart plan in years.。

Credit Suisse chairman waives first-year director fees

In a compensation report released on Tuesday, the bank said chairman Axel Lehmann would forgo a 1.5 million Swiss franc ($1.6 million) bonus for his first year in office, following the bank's worst annual results since the 2008 financial crisis.。The report also shows that Lehmann, who took office in January 2022, will not receive the standard fees normally paid in addition to board members' salaries.。

Lehmann was allocated a compensation of CHF 3 million between April 2022 and April 2023, and plans to propose at the annual general meeting that the total compensation for the next compensation period be reduced from CHF 4.5 million to CHF 3.8 million.。In addition, Credit Suisse plans to increase the chairman's share compensation from 33% to 50%。

As well as giving away director bonuses himself, Lehmann reflected how executive board members also did not receive bonuses last year, when the bank suffered a record outflow of client money and saw its share price plummet amid concerns over its restructuring plan.。In response, Credit Suisse cut its reserves for all employees by about half in 2022, setting aside only CHF 1 billion, compared to CHF 2 billion in the same period last year.。