The Swiss bank is tapping the services of the same law firm as conducted a probe of a spying scheme, finews.com has learned.
Credit Suisse retained Homburger as well as Deloitte for two investigations ordered by its board into Greensill and Archegos, respectively, a source familiar with the matter told finews.com.
The choice of Homburger in particular is puzzling: the Zurich law firm led a 2019 investigation into a corporate espionage scandal. Homburger’s probe found the spying of defecting banker Iqbal Khan to be a «rogue» incident; in fact, at least one another top executive was later found to have been tailed by private investigators hired by the Swiss bank.
Favored Lawyer
«Spygate» ended the Credit Suisse careers of operating chief Pierre-Olivier Bouée and four months later that of CEO Tidjane Thiam. The Zurich-based bank told finews.com it had not formally mandated Homburger with the newest cases, but stopped short of denying the law firm is working on Greensill and Archegos.
Homburger didn’t immediately respond to a request for comment; a spokesman for Deloitte declined to comment.
The Swiss bank has frequently tapped Homburger managing partner Flavio Romerio, who runs the law firm’s white-collar and investigations team. Homburger’s probe will be running in the background to formal Swiss regulatory proceedings for Greensill and Archegos, respectively.
Unsuccessful Battle
For the spying probe, Finma mandated Thomas Werlen, Quinn Emanuel's managing partner in Switzerland. Credit Suisse has consistently and unsuccessfully fought the U.S. law firm's investigation. Werlen’s probe is far more invasive than Homburger’s: he reportedly attempted to seize mobile phone data from Credit Suisse top executives and board directors, for example.
Picking through Greensill, a $10.1 billion asset management fund blow-up which also involves Credit Suisse’s private banking clients, as well as Archegos, an investment banking client which wrought $4.7 billion in losses last quarter, promises to be an even more intricate undertaking than the espionage affair.
Overseer In Transition
Credit Suisse's board, in transition due to the replacement of long-standing Chairman Urs Rohner with António Horta-Osório next Friday, is overseeing the results of the both investigations. Director Richard Meddings, an ex-CSFB banker with an extensive background in audit and risk management, is emerging as a key figure in them.
The bank quickly replenished its capital this week from anchor investors, after reneging on the bulk of its 2020 payout to shareholders following the dual damage. Credit Suisse's board chose to skip a so-called «décharge» or formal backing for its board and management, at its shareholder meeting.
A person familiar with the matter said Finma hasn’t yet appointed outside investigators for the enforcement proceedings.
