A few interesting facts to mull over...
Swissair were strongly advised by McKinsey Consulting to adopt the strategy of buying foreign (Non-Swiss) European airlines as the main part of its expansion policy. The assumption was that non-Swiss airlines are badly run, and some 'proper' Swiss management would soon turn 'em around. Bloody foreigners, you can't trust 'em, you know.
A major player on the Swissair Board at the time was a chap called Lukas Mühlemann.
Lukas Mühlemann was for many years the CEO of McKinsey Consulting (Switzerland). His specific account was, (a bit embarrassing, this), Swissair. Ahem.
Meanwhile, Lukas Mühlemann has been a major player at Credit Suisse for nearly ten years, since he left McKinsey, and is now in fact the CEO. Credit Suisse is also a major McKinsey account. Chuck a brick in Credit Suisse and it'll hit a powerful ex-McKinsey executive square between the eyes. Nepotism? Perish the thought.
Any company's banker has a strong influence on its strategic initiatives.
The McKinsey advice was rubber-stamped by the Board, in spite of knowledgeable resistance inside and outside the company.
The strategy was proven to be a load of bollocks.
McKinsey Consulting legged it from Swissair when it became clear that their 'strategy' had pretty much broken the back of the company.
Lukas Mühlemann 'retired' from the Swissair Board during the previous crisis meeting, just a few months ago.
Just after Mühlemann's 'retirement', a market analyst 'retired' from Credit Suisse just after he wrote a 'totally erroneous and biased' report which clearly stated that Swissair was screwed and a clear 'sell-sell-sell'. The Swissair stock price remained high.
Swissair has just gone tits up.
The whole Swiss establishment is pointing at the WTC disaster as the root cause...
...which is a load of toss.
For some strange reason, Credit Suisse's exposure to the Swissair bankrupcy is strangely low, especially when compared to UBS. Any rumours relating this to the fact that Lukas Mühlemann is the CEO of Credit Suisse are totally without foundation. Clearly.
Lukas Mühlemann looked rather uncomfortable at last night's press conference, which was one of the few high spots of the occasion.
Do I hear the sound of keys rattling? Oh, I do hope so...
TW