Credit Suisse may have seen its complaint against a UBS raid on its relationship managers upheld in the U.S. But the arch-rival still believes it is in the right.
The legal wrangle between Credit Suisse and UBS lasted for the best of four years. The smaller of the two Swiss banking giants filed a suit against UBS at the end of 2015 because the bigger rival had poached about 100 of its 330 U.S.-based relationship managers.
The strong reaction by Credit Suisse was slightly paradoxical in the sense that the then new CEO Tidjane Thiam had decided to shutter the U.S. brokerage, which would have meant that its staff would have lost their jobs in any case. But a court of arbitration in New York has upheld its complaint, «Bloomberg» reported.
UBS Remains Unrepentant
UBS has to pay $9 million for raiding Credit Suisse' ranks. The bank is unrepentant. A UBS spokesperson told the news agency that Credit Suisse had asked for much more. UBS maintained its position that the demands were without merit and that the ruling went against applicable law.
Credit Suisse in 2015 had agreed with Wells Fargo that the U.S. bank would assume its relationship managers. Given the terms of the agreement, only about a third of them accepted the offer, with almost as many opting to join UBS instead.
Credit Suisse is pleased with the ruling, a spokesperson told finews.com.
