Credit Suisse and former Treasury Secretary Iqbal Khan reach settlement in spy case

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Credit Suisse Group Update

Credit Suisse has resolved one of the most explosive disputes in its history, reaching an out-of-court agreement with former star wealth manager Iqbal Khan, as it prepares to hold an agreement under the new chairman Antonio Horta-Osorio on Thursday. First quarter results.

A spokesperson for the bank confirmed that after they sued Credit Suisse and the private detective company Investigo, it had reached a settlement with Khan and his wife because they followed them on the streets of Zurich. “All parties involved agree to a settlement,” Credit Suisse said. “This matter is now over.”

The news was first reported in the Swiss newspaper NZZ am Sonntag.

Credit Suisse did not provide more details about the settlement, while Khan and Investigo did not respond to requests for comment.

After the banker defected to its main rival UBS two years ago, the feud between Khan and Credit Suisse was one of Switzerland’s most high-profile corporate scandals, which eventually led to Tidjane Thiam’s deposed Switzerland in February last year. The position of Chief Executive Officer of Credit.

After Khan resigned, Credit Suisse worried that he would try to lure employees and customers to UBS, and hired Investigo to monitor him and identify anyone he encountered.

Khan claimed that a group of three people drove and walked after him and his wife on the streets of Zurich, and ended up in a physical conflict behind the Swiss National Bank.

Credit Suisse subsequently admitted that it had hired a private investigator to track another former executive, Peter Goerke, and that both surveillance incidents were ordered by its former COO Pierre-Olivier Bouée.

In response, the Swiss financial regulator Finma launched execute program Last year on how the bank violated the law through monitoring, and “especially how to record and control these activities.”

Finma told the Financial Times that its enforcement procedures against Credit Suisse were not affected by the Khan settlement.

In the two years since Khan’s departure, Credit Suisse has been plagued by a series of scandals that eventually led to Double crisis Around controversial financial companies Greenhill Capital And family office Big Brother Capital This spring revealed the key weakness of the bank Risk management and culture.

The Swiss bank was forced to suspend investment in Greensill-related debt worth 10 billion U.S. dollars in March. Just a few weeks later, it lost $5.5 billion after the collapse of Archegos, a client of the bank’s main brokerage department.

Former Lloyd Bank Group CEO Horta Osorio took over as chairman in April. Under review The lender’s risk operations and strategic direction.

At the same time, since becoming the co-head of UBS Wealth Management, Khan has experienced a period of strong growth.The department reported the best second quarter last week, Has created record profits in Asia. The pre-tax profit of the wealth management department jumped to US$1.3 billion, a year-on-year increase of 47%.

Khan, who was once regarded as a potential Credit Suisse CEO, received a one-time payment of $8.1 million when he joined UBS.

Additional reporting by Stephen Morris

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