Credit Suisse is launching an investigation into a skirmish between its former top private banker, Iqbal Khan, and a private security detail in downtown Zurich.
The Swiss bank's board is launching a «detailed inquiry» of a melee between Iqbal Khan, its recently-defected private bank boss, Credit Suisse told staff on Monday in a memorandum seen by finews.asia. A spokeswoman confirmed the contents of the memo, posted on Credit Suisse's intranet.
«Please rest assured that a detailed inquiry has been launched by the board of directors into these events and we are confident that the truth will emerge,» Chairman Urs Rohner and CEO Tidjane Thiam wrote in a joint statement.
Downtown Melee
The remarks come after it emerged that Credit Suisse reportedly had Khan tailed by private security. The Swiss banker and three men tasked with following him were involved in a skirmish in broad daylight in downtown Zurich last week. The three, whose identity is unclear, were reportedly arrested and face charges of coercion.
The image of fisticuffs in broad daylight on a tiny street that is also home to Switzerland's central bank represents disastrous «optics» for Credit Suisse. The Swiss bank's swift response is evidence of what is at stake. Credit Suisse's investigators will report their findings to Rohner, the bank said.
Unprecedented Move
The 43-year-old Khan's exit from Credit Suisse for UBS, where he is due to start as co-head of wealth management next Tuesday, is without precedent in recent history. While bankers move between the wealth giants almost daily, Khan isn't being held to his notice or a traditional cooling-off period.
Credit Suisse was apparently looking to ensure that Khan didn't poach clients or key staff before officially joining UBS, the outlets reported. The absurd skirmish was witnessed by Khan's wife, who was with him at the time, as well as bystanders.
Press Slammed
The bank slammed various media reports, which ranged from international outlet «Bloomberg» to local weekly «Sonntagszeitung,» Swiss tabloid «Sonntagsblick,» and banking blog «Inside Paradeplatz,» as incorrect, without specifying which elements of the reporting are erroneous.
«In response to a series of media reports involving Credit Suisse this weekend, there are significant inaccuracies in the reporting that have sensationalized both facts and events,» the bank said,» Rohner and Thiam told staff.
