trending Market Intelligence /marketintelligence/en/news-insights/trending/y9-AQan48ubH64gIMQ_fUg2 content esgSubNav
In This List

Report: Credit Suisse board set to back CEO amid spy scandal

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Report: Credit Suisse board set to back CEO amid spy scandal

Credit Suisse Group AG's board is expected to back CEO Tidjane Thiam ahead of a Sept. 30 meeting in relation to the alleged spying of former wealth management head Iqbal Khan, Bloomberg News reported, citing people familiar with the matter.

Members of the board will reportedly determine at the said meeting which senior executives should take responsibility for the situation.

Several shareholders and investors of the Swiss lender have expressed support to Thiam and other senior management members, following a commissioned investigation into reports that the group hired detectives to probe whether Khan was trying to poach Credit Suisse employees after joining rival UBS Group AG. The lender's investigation was understood to be focusing on COO Pierre-Olivier Bouée's potential role in approving the alleged surveillance of Khan, according to a separate Bloomberg report.

Swiss prosecutors also launched an inquiry into the matter after Khan reportedly filed a criminal complaint alleging threats and coercion.

Credit Suisse's largest shareholder, U.S.-based Harris Associates L.P. has been the most vocal supporter of the bank in the wake of the scandal, with Deputy Chairman David Herro saying the group was within right to protect itself from potential poaching if done legally. Ricky Sandler, CEO of Eminence Capital LP, also highlighted Thiam's efforts to restructure Credit Suisse and said that losing any senior executive over the issue would be an "unfortunate outcome" for stakeholders.

Credit Suisse hired Homburger to look into the matter and will discuss the Swiss law firm's findings at the meeting, with a decision expected to be disclosed Oct. 1, according to the newswire.