In the aftermath of Credit Suisse’s Archegos’ billion-dollar scandal last April, the bank ousted the head of its investment banking department. But there were other problems.
At the time Archegos was blowing up, Credit Suisse was investigating Brian Chin internally on allegations of mistreating women, subsequently finding him guilty of violating the firm's code of conduct, the «Wall Street Journal» (behind paywall) reported Wednesday.
In the aftermath of the Archegos debacle in spring 2021, which wound up costing Credit Suisse $5 billion, the mopping up of the mess began. One of the biggest heads to roll was certainly Brian Chin, then head of investment banking. Along with Chin, eight others were dismissed and bonuses of $18 million were withheld.
Anonymous Tip
At the same time, Chin was being investigated for his conduct as well. As far back as 2020, a female employee complained via the bank’s anonymous tip hotline about Chin and the securitized products team he led and their behavior towards women.
A law firm was hired to investigate and subsequently identified misconduct was deemed serious enough to warrant possible termination under a bank's internal rating system, the «WSJ» article said.
While details of the allegations are not known, the bank's code of conduct states employees must behave respectfully, ethically, and professionally at all times. Supervisors could be subject to disciplinary action if they fail to treat subordinates appropriately.
Full, Independent Investigation
Credit Suisse took the allegations very seriously and launched a full, independent investigation, and took appropriate action, a spokeswoman told the outlet. She went on to say the bank does not tolerate any actions by employees disrespectful to colleagues or clients or violating the bank's code of conduct. Chin declined to comment to the «WSJ.»
The «Birdcage»
One of the alleged incidents reviewed by the law firm took place at an annual Credit Suisse golf club in the Hamptons on Long Island, with women not being allowed to eat in the main dining room. Some of the women complained about having to sit on a porch in an area referred to as a «birdcage.»
Chin joined Credit Suisse in 2003 and rose through the ranks when in 2012 he was promoted to global head of the securitized products group which structured and traded mortgage bonds and asset-backed securities and was one of the firm's top-performing teams.
