Credit Suisse settles spying case with former executive Iqbal Khan

Credit Suisse has reached a settlement with former international wealth management head Iqbal Khan and private investigators over a spying scandal that made headlines in 2019. 

A spokesperson for the Swiss bank told Financial News that “all involved parties” have agreed to settle and that the “matter is now closed”.

A spokesperson for Khan declined to comment to the Wall Street Journal and the private detective firm, Investigo, didn’t immediately respond to the paper’s request for comment. 

Khan, who is now co-president of global wealth management at rival bank UBS, was spied on by investigators hired by Credit Suisse in September 2019.

Khan, who at the time was leaving to join the UBS a month later, went to the police after noticing one of the investigators and confronting them. 

An external investigation commissioned by the bank’s board and carried out by a law firm had found that the surveillance had been ordered by Credit Suisse’s chief operating officer, who has since resigned, to protect the bank’s interests.

READ Credit Suisse’s ‘Spygate’ scandal may go further — report

In September 2020, Swiss financial market supervisory authority Finma launched a case against Credit Suisse over its spying of executives, proceedings that remain open. 

The reputational fallout from the scandal saw the former chief executive Tidjane Thiam resign in February 2020.

READ Credit Suisse offers pay hikes to keep senior bankers as more depart in wake of Archegos

The settlement of the case comes as Credit Suisse faces pressure following the twin crises of family office Archegos Capital’s failure, which cost the bank $5.5bn, and its links to now-collapsed supply chain finance firm Greensill Capital.

READ New Credit Suisse chair Horta-Osorio resets agenda after Archegos, Greensill saga

New chair António Horta-Osório said he would review the bank’s risk management during the it’s annual meeting on 30 April, the Wall Street Journal reported. “A tough period and hard decisions lay ahead of us,” he said.

Swiss local newspaper NZZ am Sonntag first reported the settlement.

To contact the author of this story with feedback or news, email Bérengère Sim

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