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So it is questionable as to whether there has been a culture change in the investment banking environment. A doyen of the branch, now working as a consultant, sees it like this: military-style mergers and takeovers have taken on a martial tone. Harassment of all kinds, mobbing and swearing are all «out». Some senior bankers don’t seem to have realized this. However at some point they cross a red line, and must then live with the consequences. 

Ombudswoman Appointed

It has also been whispered that such red lines were tested in Credit Suisse dealing rooms in Zurich in recent years. Thus finews.com heard at first hand that a senior trader threatened colleagues when challenged on a banking issue. The source was also aware of stories about how badly trainees were treated doing the rounds in the trading rooms. The source stressed though that zero tolerance now reigns supreme.

A Credit Suisse spokesman said, «We have no knowledge of these episodes. Credit Suisse sets clear standards for behavior globally and expects them to be met. The bank encourages all of its employees to report improper behavior through channels set up specifically for this purpose. We take these reports very seriously, and investigate them carefully. Violations are consistently sanctioned.»

This is also the policy passed down from Credit Suisse CEO Thiam. The bank won’t tolerate sexual harassment: In July Thiam personally named Antoinette Poschung as ombudswoman for ethical and behavioral issues. In future any signs of harassment will be investigated by the ombudswoman, the bank promised. Banks are now aware that the fall-out from episodes like the New York incident can damage the bank’s reputation.

Behavior Relevant to Pay

At UBS a spokeswoman commented: «Since 2010 UBS has a fundamental policy on the issues of discrimination and sexual harassment at the workplace.» The policy states that sexual harassment won’t be tolerated, how one can recognize and avoid such harassment, what avenues for complaint are open to staff and what sanctions will be imposed in breaches of the policy.

Talk from the bank also notes that behavior at the workplace can also affect remuneration and promotion at the bank. This would seem to reflect the banking sector standard now, according to a high-ranking investment banker at a U.S. bank in Switzerland.

Important though is that the code of conduct is respected from above. He lived through the «old days» and confirmed the stress levels in investment banking haven’t eased. However he advised those who need to let off steam to «go out and play sport instead.»