Yahoo Finance Credit Suisse reaches settlement over executive spying case
Credit Suisse Group (CS) said on Sunday that it had reached a settlement over a spying scandal involving former executive Iqbal Khan that had shaken the bank, and led to its CEO Tidjane Thiam stepping down in February last year.
The bank said that all parties had agreed to settle — including Khan, his wife and the private detective firm Investigo. "This matter is now closed," the bank said.
A probe by the Swiss financial regulator Finma into surveillance activities by the bank is still ongoing.
Back in 2019, Credit Suisse hired a private investigator to trail Khan, who had been tipped as the next CEO before leaving to work at rival UBS Group.
There was a physical altercation between Khan and the people following him, leading to investigations by Zurich's prosecutor and the company's board.
The settlement brings to close a string of scandals in recent months for one of Europe's largest lenders, which is now also facing an exodus of senior bankers.
The bank has faced a double blow from the collapse of Archegos Capital Management and Greensill Capital. Credit Suisse had warned that Archegos would cost it $4.7bn (£3.4bn) in losses, while it also ran funds for Greensill totalling $10bn which had to be frozen.
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Credit Suisse shares are down about 20% this year, despite a nascent recovery in banking stocks due to optimism for a strong economic recovery post-COVID.
It comes ahead of the bank's Q2 earnings, due this week on Thursday. New chairman Antonio Horta-Osorio has pledged a review of the bank's businesses in coming months.
Watch: Archegos fund blow up sends shockwaves through Wall Street
