Saudi National Bank chair steps down post Credit Suisse collapse

Saudi National Bank's chairman Ammar al-Khudairy resigned days after the Credit Suisse buyout which took place earlier this month, as per the statement released by the Saudi stock exchange.

Saudi National Bank was Credit Suisse's main shareholder before its collapse. The Saudi bank's board of directors "accepted the resignation" of Ammar al-Khudairy "due to personal reasons", read the statement.

Disciplinary action against Credit Suisse

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Meanwhile, Swiss financial regulator FINMA stated that managers of Credit Suisse may face disciplinary action after the second largest bank in Switzerland was rescued by UBS last week.

Speaking to Swiss newspaper NZZ am Sonntag, FINMA President Marlene Amstad said that it was "still open" whether they will start new proceedings, however, the main focus of the regulator was on "the transitional phase of integration" and "preserving financial stability".

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Responding to whether FINMA is considering holding current managers of Credit Suisse accountable for the bank's fall, Amstad stated that it is "exploring the options".

"CS had a cultural problem that translated into a lack of responsibilities," said Amstad, adding, "Numerous mistakes were made over several years".

Six public "enforcement proceedings" have been conducted by FINMA against Credit Suisse in recent years, said Amstad. "We have intervened and used our strongest instruments," she added.

Amstad further defended the decision of Switzerland to write down Credit Suisse Additional Tier 1 (AT1) debt's 16 billion Swiss francs to zero which was part of the forced rescue merger.

"The AT1 instruments contractually provide that they will be fully written off in the event of a trigger event, in particular the granting of extraordinary government support," said Amstad.

"The bonds were created precisely for such situations,” she added.

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In another interview with the Swiss newspaper SonntagsZeitung, FINMA's CEO Urban Angehrn defended the role it played in handling Credit Suisse before the takeover.

"We intervened consistently in these cases, used our instruments, and they had an effect. We do not run the bank, that responsibility lies with the board of directors and the management of the bank,” he said.

Credit Suisse was purchased by UBS for 3 billion Swiss francs ($3.26 billion) a week ago.

(With inputs from agencies)

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