Raiffeisen said its CEO has been questioned as part of a criminal probe of alleged secret side deals by his immediate predecessor. The move raises the specter of the probe widening to include executives at the Swiss bank.

The St. Gallen-based bank has been rocked by a criminal investigation into Pierin Vincenz, its long-standing Chief Executive until 2015. On Wednesday, the bank said Patrik Gisel, Vincenz's former protege who succeeded him as CEO three years ago, was questioned by prosecutors in Zurich as part of the probe.

«Raiffeisen Switzerland informs that CEO Patrick Gisel was questioned by Zurich prosecutors. No criminal investigation has been opened against him,» the bank said in an unprecedented statement. Raiffeisen also denied that it had asked prosecutors to seal certain documents or evidence. Vincenz, who has been in custody for over three weeks, has denied wrong-doing.

Nerves Shot

The comments are emblematic of overwrought nerves at Raiffeisen. The cooperative lender's Chairman Johannes Rueegg-Stuerm stepped down quickly two weeks ago as more revelations of Vincenz's alleged side deals with the bank emerged.

Then, the bank backed Gisel, but promised a thorough review of the alleged wrong-doing. The bank, which is a collection of several hundred retail cooperative banks in Switzerland, echoed the sentiment on Wednesday.

«It is in the interest of Raiffeisen Switzerland that the events of the Vincenz era are clarified. We are supporting prosecutors with everything in our power,» the bank said.

Curious Denial

The bank's denial that its CEO is the subject of a criminal probe is curious in that nothing suggests that he is – and his questioning as part of the Vincenz probe will be a routine piece of investigative business.

The bank's response reflects efforts shield Gisel from the fallout of the probe and prop up his standing – for now, as finews.com reported two weeks ago. The Raiffeisen CEO has expressed shock and disdain for Vincenz's alleged wrong-doing, but questions has lingered given Gisel's proximity to his mentor until 2015. 

Gisel was also chairman of Investnet, one of the vehicles in which Vincenz is accused of side dealings, until three years ago.