The Swiss bank is beginning to clear out following a legal investigation into its $10.1 billion Greensill supply chain fund scandal.
Zurich-based Credit Suisse dismissed two portfolio managers after a post-mortem of the Swiss bank's dealings with Greensill, a source familiar with the matter told finews.com on Wednesday, confirming a report by the blog «Inside Paradeplatz» (in German).
«Based on the preliminary findings of the investigation which have been shared with the regulators, Credit Suisse has taken action with regards to various individuals,» a spokeswoman for the bank said. «These actions include termination of employment and severe monetary penalties via compensation adjustments. External investigations are still ongoing.»
Greensill «Full Monty»?
A legal report of the events surrounding the Swiss bank's involvement with the now-defunct U.K. supply chain financier led by white-collar Zurich law firm Walder Wyss has been delivered to Credit Suisse, the person said. The bank is likely to make some or all findings public next year, they noted.
Credit Suisse's board under António Horta-Osório is reportedly still debating how open it wants to be about how the bank stumbled into a $10.1 billion fund shambles. The bank, whose sudden pullback in March set into motion events which culminated in Greensill's insolvency, has never disclosed whether it will or won't publish the legal findings.
C-Suite Clawback?
Former asset management boss Eric Varvel reportedly may have to relinquish up to $10 million after leaving the bank. Credit Suisse's surge in growth of the supply chain funds occurred parallel to the wind-down of controversial GAM products steeped in the same assets.
Greensill is among a raft of issues facing Horta-Osório, who took over from Urs Rohner nearly eight months ago. Credit Suisse also lost more than $5 billion on Archegos shortly before its Greensill problems surfaced, and two months ago pleaded guilty in a U.S. criminal probe into loans for Mozambique.
