Liability of the Chairman of the Board of Directors of a Bank

Facts

- S. AG in liquidation (respondent) operated a bank in K. as a joint-stock company. - A. (appellant) was a member of the Board of Directors since 1980 and Chairman of the Board of Directors of the respondent since 1986. - The respondent was primarily engaged in mortgage lending and had an important client in the B. Group. - The Swiss Federal Banking Commission (EBK) revoked the respondent's license to operate in 1996, as the exposure to the B. Group exceeded the permissible limits. - The respondent sued A. as well as other former members of the Board of Directors and the auditor for damages. - The Commercial Court held A. jointly and severally liable to pay CHF 7.475 million to the respondent. It found breaches of duty by A. in risk distribution and lending, as well as deficiencies in management and financial planning.

Considerations

- The Federal Supreme Court examined whether the Commercial Court and the Cassation Court had violated federal law: - It rejected the appellant's allegations of…