Credit Suisse revealed the findings of a second investigation into another surveillance operation on a top executive. The probe has severe consequences for its former operating chief.
The Swiss bank admitted it spied on a second top executive, after a quick investigation of a second surveillance operation reported last week by «Neue Zuercher Zeitung». Former human resources boss Peter Goerke was tailed by detectives, much like former top private banker Iqbal Khan, Credit Suisse said in a statement.
The second instance of spying was organized by Pierre-Olivier Bouée, the former operating chief of Credit Suisse until he left in October for having Khan tailed. Bouéee, a French former consultant and close ally of CEO Tidjane Thiam who was allowed to resign in October, will be sacked for cause instead, the bank said.
Reassembled Probe
As with the Iqbal Khan probe, Credit Suisse consulted Homburger, a Swiss white-collar law firm. The investigation found that the «responsible individuals» – an apparent reference to Bouée and to its former head of security – lied during the first probe. It cleared all current Credit Suisse top executives and board members under Urs Rohner.
«The new investigation by Homburger did not find any indication that the group CEO Tidjane Thiam, other members of the executive board, or members of the board of directors had any knowledge of the observation of Peter Goerke until media reported on it,» the bank said. Credit Suisse didn't mention a third allegation of executive spying by former U.S. compliance chief Colleen Graham.
Scandal Spreads
The bank can no longer stanch the scandal: Credit Suisse conceded that revelations it spied on its own top executives had damaged its reputation. On Friday, Switzerland's regulator took the matter in hand.
The bank said it had put safeguards in place to ensure it doesn't spy on its own staff again, including undisclosed personnel decisions and a pledge to more rigorously follow internal policies. «With the measures that we have put in place, we are sending a clear message that the board of directors firmly rejects a culture of observation,» Credit Suisse said.
