Oliver Hirt and Sumeet Chatterjee, John O’Donnell

ZURICH/FRANKFURT/HONG KONG (Reuters) – After taking over as chairman of Credit Suisse (SIX.) Antonio Horta Osorio, a banker in Switzerland, promised to establish a culture that encourages personal accountability after several scandals.

This promise was the final straw that sealed his fate. He had served just eight months as an office holder and had been found guilty of flouting quarantine laws in Britain, Switzerland and Britain.

This marked the end to his efforts to reform Switzerland’s second-biggest banking institution. The bank is still struggling with the consequences of a series of previous failures. These include spying on executive and investment losses that reached into the billions.

Horta-Osorio, who resigned, expressed regret for his “personal activities… that compromised my ability [internally and externally] to represent the bank.” According to his spokesperson, he will not speak with the media.

Horta Osorio was just days away from promising to clear the bank and create a sense responsibility. He flew in private aircraft to London to see the Wimbledon tennis finals. The flight broke Britain’s coronavirus quarantine regulations, according to three sources familiar with the matter.

At the time of disclosure, Horta Osorio was already cited in Switzerland for similar breaches. The bank also scanned his records for other violations.

The use of company planes by the Portuguese banker was also under investigation. According to two sources, he directed a company plane that dropped him in Maldives after returning from an Asia business trip.

Senior managers reacted to the episodes and made it difficult for him to control the strategy battle with the executives at the bank he was brought in to look after.

BACKDROP UNFORGIVING

Horta Osorio simply explained his Wimbledon failure by explaining that he wasn’t aware he failed to obtain the British business waiver his office requested. He blamed his staff for not informing him.

The person stated that he had originally planned to bring Credit Suisse clients along to the tournament. He then donated two tickets to his kids when they were forced to leave by the pandemic.

His defense, which was made after a December public apology for violating Swiss quarantine rules fell apart.

People familiar with the matter say that the breach took place in a hostile environment of rising hostility within Credit Suisse’s senior executives.

Horta Osorio believed that details about his transgressions had been leaked by members of the group. One of these people described Horta Osorio as having “antipathy” within the bank. Unsourced information suggests that the chairman had been involved in “war” alongside key executive board members.

Credit Suisse refused to discuss whether there had been rifts between Thomas Gottstein, Chief Executive Officer of the bank and former Chairman. Horta Osorio’s investigation has yet to be published by Credit Suisse.

According to another person at the bank’s top-level meetings, Horta Osorio has questioned executive during quarterly reviews of bank performance.

In discussions about the second quarter last year’s results, he continued with sharp questions and asked for data.

The person stated, “There were quite some red faces.”

According to him, many top employees are unhappy about Horta-Osorio’s efforts to increase the power of the board of directors at the expense and profit of the executives.

‘ORCHESTRATED CAMPAIGN’

In Switzerland, Credit Suisse is regulated, and one third of its 49,000 employees work there, not only did it cause friction with bankers but also the widespread condemnation of the Portuguese banker.

One person who spoke to Reuters stated that Horta Osorio felt shocked by all the hostility he experienced while on his trip to Switzerland.

Horta Osorio’s sudden resignation now raises questions about the bank as it continues to decline in stock prices and amid renewed speculations that it might be an acquisition target for UBS (or a foreign bank).

David Herro, of Harris Associates was one of the largest shareholders of the bank. He described his contribution to turning around the bank as an important reason for investors.

He said that there was an organized campaign, as constituents don’t want to see a credit Suisse strong rebounding.

One person said that Horta Osorio tried to save the situation in recent days.

After a newspaper report that he was in an extramarital affair, he faced a similar humiliation as the chief executive at Lloyds Bank of Great Britain (LON) Bank.

Horta Osorio, in an email to Lloyds employees in 2016, stated that he hadn’t broken bank rules by mixing personal and business expenses. He also showed repentance.

His words were, “Having the highest professional standards raises our standard,” I don’t think anyone can do it all perfectly every time. It’s important to learn from our mistakes.

He was unable to make amends in Switzerland.