- Credit Suisse found that a banker drove a loss of roughly 10 million francs ($11 million) after forging documentation for an African wealth-management client, Bloomberg reported on Friday.
- The bank has since dismissed the Zurich-based banker and is reimbursing affected clients, sources familiar with the matter told Bloomberg.
- The case follows other high-profile controversies involving the bank, including its 2019 spying scandal and its selling of $1 billion in securities linked to Wirecard.
- Credit Suisse “took appropriate legal measures and informed the affected clients and relevant regulators,” the bank told Business Insider in a statement.
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The bank fired the Zurich-based banker after discovering the forgery earlier this year, sources familiar with the matter told Bloomberg. They said that losses connected to the case, which involved an African client, harmed other clients as well as Credit Suisse.
The losses were posted by Credit Suisse’s division for Africa and nonresident Indian clients. The bank is compensating affected clients, a source told Bloomberg.
“Credit Suisse confirms a case from the first quarter of 2020 in which a small number of clients were affected by unauthorized actions of a client advisor,” the bank told Business Insider in a statement. “Credit Suisse took appropriate legal measures and informed the affected clients and relevant regulators.”
Credit Suisse has been involved in other controversies in recent years. The bank made headlines in September when its star banker Iqbal Khan filed a complaint that said investigators followed him through Zurich after he left the firm for its rival UBS.
A review of the incident found that Credit Suisse’s CEO at the time, Tidjane Thiam, had no knowledge of the banker’s following. Chief Operating Officer Pierre-Olivier Bouee took the blame and resigned from the bank.
More recently, the firm has taken heat for offering loans to the troubled cafe chain Luckin Coffee and selling roughly $1 billion in securities linked to Wirecard, the now bankrupt payments processor. Credit Suisse’s new CEO, Thomas Gottstein, began a shake-up at the end of July to buttress the bank’s risk-management efforts.
Philipp Wehle, Credit Suisse’s CEO of international wealth management, is also revamping the division to curb similar missteps, according to Bloomberg; the firm aims to update its exposure to the oil and gas industries, as well as reform how it uses illiquid assets as collateral for some loans.
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