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2022: Total assets of UBS and Credit Suisse - 208% of Swiss GDP
Business in Russia
Main article: Credit Suisse Moscow
2023
Losses in China
Fines in the US and Britain for $387 million due to violations in transactions with Archegos Capital Management
UBS Group AG will pay a total of about $387 million in fines related to the misconduct of Credit Suisse Group AG in transactions with Archegos Capital Management, as the new owner of the collapsed Swiss competitor began to pay his legal costs.
The amount of the fine under the agreement of the bank with the US Federal Reserve is $268.5 million.
British regulators fined the Swiss bank a record £87m.
The reasons for the bank crash were classified for 50 years
On July 17, 2023, it became known that the results of the Credit Suisse investigation into the causes of the bank crash would be classified for 50 years. The investigation commission will focus on the activities of the government, financial regulator and the Central Bank of Switzerland in the period preceding the emergency takeover of Credit Suisse by UBS in March 2023.
Plan to cut more than half of employees
On June 27, 2023, it was revealed that UBS Group plans to cut more than half of Credit Suisse Group AG's 45,000 employees from next month in an emergency takeover of the bank. The cuts will begin in July, and two more stages will take place in the fall.
Bankers, traders and support staff at investment bank Credit Suisse in, and some London New York regions of Asia are expected to bear the brunt of the cuts, with almost all activities at risk, the sources said.
Singapore court defeat in Bidzina Ivanishvili lawsuit
In May 2023, Credit Suisse lost a case in a Singapore court against Bidzina Ivanishvili, compensation could amount to hundreds of millions of dollars.
The court estimated his damages at US $926 million, a figure he then revised downward by US $79.4 million, noting that this amount could be changed further "to prevent double recovery."
Singapore-based Credit Suisse Trust Ltd. breached its obligations to the plaintiffs by failing to secure trust assets, the court ruling said.
Record outflow of funds from deposits and from the asset management division in the first quarter
Credit Suisse Group AG reported an outflow of 61.2 billion francs ($69 billion) US) in Q1 and made major write-offs in its asset management unit, thereby stressing that UBS Group AG has to address the issue of retaining key customers and assets after an emergency takeover.
Forced sale of Credit Suisse to UBS bank for just $3 billion to avoid bankruptcy
On March 19, 2023, on Sunday, Credit Suisse essentially went bankrupt through a forced merger with UBS Bank . Although in official statements they diligently tried to avoid the expression "bankruptcy," but you need to call the events as they are. For a number of reasons and circumstances, the continuation of Credit Suisse's independent activities has become impossible.
The 166-year history of the bank ended almost instantly. The biggest bank liquidation in Swiss history, the biggest asset bankruptcy since Lehman Brothers and the biggest bank drop in Europe. A significant deformation of the sample of the "quiet financial harbor" in Switzerland, carefully built for more than 100 years.
The bank, which has the highest liquidity deposit coverage ratio (about 50%), went to the bottom in just a week after a massive reputational hit, a flight of customers/investors and the closure of limits on the bank by leading financial counterparties.
UBS agreed to buy Credit Suisse in a government-brokered deal. The deal is worth 3 billion francs (the price is less than half the value of Credit Suisse at the close of trading on March 17 and more than 40 times cheaper than at its peak in 2007) in a deal with the government that includes extensive government guarantees and the SNB.
The Swiss National Bank allocates up to 100 billion francs as liquidity support to UBS, while the government provides a guarantee of 9 billion francs for possible losses from Credit Suisse assets as part of the merger, adaptation and restructuring of the business.
In fact, UBS buys out a bank with assets of over 530 billion francs and a cash position of more than 120 billion for 3 billion, secured by a guarantee of covering the cash gap by 100 billion from the SNB and losses of 9 billion from the government - a phenomenally successful deal for UBS, the Spydell Finance channel noted.
The merger of the deal was carried out without shareholder approval, with every conceivable and unthinkable breach of formal protocols in excess of a short time. This is the fastest takeover of a bank of this level in the history of the banking industry (from the moment of acute problems), both in Europe and in the United States.
The Swiss Government adopted an emergency decree to avoid the need for shareholder approval, destroying the principle of transparency and legal certainty, i.e. the conditions when there is a deviation from the rules depending on the situation.
Shareholders receive 3 billion, but investors in bonds are reset to 16 billion francs. The deal would result in the "full write-down" of the tier one bank's additional bonds, Swiss financial regulator FINMA said in a statement. The bond write-off was the biggest loss for Europe's $275 billion AT1 market, far surpassing the only €1.4 billion write-down of this type of securities before in 2017 at the time of Banco Popular's bankruptcy and takeover by Banco Santander. This is a special type of bond for banks, integrated in 2009 to increase the capital of banks acting as a buffer in order to increase capital adequacy.
The Central Bank of Saudi Arabia invested in Credit Suisse at the level of 3.82 francs per share now it will receive only 0.25 francs per paper. The Bank of Saudi Arabia invested $1.5 billion and now it has only about $100 million left.
Credit Suisse's forced takeover deal is strange enough and questionable at first glance. At the time of its announcement, there are no details on the merger of UBS and Credit Suisse, and the process of coordinating organizational and legal points will last at least until the end of 2023, but apparently the takeover goes to the entire division along with the profitable segment of traditional banking.
The Credit Suisse brand will continue to exist until the deal to take over UBS closes, said CS chairman Axel Lehmann. Then decisions regarding the preservation of the brand will be made by the management of UBS, the branches of Credit Suisse will continue to work as usual. Since 2009, Ambassador Credit Suisse has been the famous tennis player Roger Federer.
Loan from the National Bank of Switzerland up to $53.7 billion to avoid bankruptcy
On March 15, 2023, it became known that Credit Suisse would borrow up to $53.7 billion from the Swiss National Bank to avoid bankruptcy.
"Credit Suisse announces its intention to access a covered NBSC credit facility as well as a short-term liquidity support facility totalling up to CHF 50 billion. This additional liquidity will support Credit Suisse's core operations and customers. "
Saudi National Bank wanted to increase its stake in Credit Suisse to 40%, but Swiss authorities refused
The National Bank of Saudi Arabia (SNB) wanted to increase its stake in Credit Suisse to about 40% from 9.88%, but it was prevented by the Swiss regulator FINMA, the Blick newspaper later reported in July 2023.
It is unclear why FINMA opposed the move, which would have seen SNB, which was already Credit Suisse's largest shareholder, pour $5 billion into the bank.
Managers secretly pay themselves €1bn in bonuses
Bankers Credit Suisse "gave" the bank, which was on the verge of bankruptcy, wrote in May 2023 Sonntags Zeitung. Shortly before the bankruptcy, huge bonuses were secretly paid to board members and top executives, despite the fact that the council had already decided to cancel or reduce bonuses for bank executives. Bonuses were awarded in secret to avoid criticism. In total, the bank's leaders could pay themselves more than 1 billion euros.
Largest shareholder Harris Associates sold its entire stake in the bank
In early March 2023, it became known that Harris Associates stock picker David Herro sold the company's entire stake in Credit Suisse Group and thereby put additional pressure on the bank.
The investment was discontinued within the last three to four months, said Herro, chief investment officer for international equities at Harris Associates.
Harris Associates has been Credit Suisse's largest shareholder for years but cut its stake from 10% to 5% by the end of 2022. Shares fell to an all-time low at the start of March 2023 after last month's financial results, which posted a bigger-than-expected loss amid record capital outflows.
Credit Suisse shares have lost about 95% of their value since the summer of 2007.
Bidzina Ivanishvili receives $210 million compensation from Credit Suisse for bank manager's fraud
In February 2023, Credit Suisse paid $210 million to Georgia's richest billionaire Bidzina Ivanishvili. The businessman has sued one of the biggest Swiss banks since 2016, claiming he lost hundreds of millions of dollars over the actions of one of the managers.
Freezing of Russian assets for 17.6 billion Swiss francs
Credit Suisse froze Russian assets by 17.6 billion Swiss francs (more than $19 billion), significantly more than the amount of 7.5 billion francs, which is officially blocked by the Swiss authorities in accordance with Bern sanctions against Moscow, Swiss media reported in February 2023.
Firing 10% of investment bankers in Europe
In mid-January 2023, it became known that Credit Suisse is cutting more than 10% of its investment banking staff in Europe. The information appeared a month after the second largest bank in Switzerland laid off 2.7 thousand employees in London and Zurich. In total, 52 thousand people worked in Credit Suisse offices around the world by the beginning of 2023.
Credit Suisse will continue the implementation of an extensive restructuring plan, which includes the reduction of 9 thousand jobs by 2025 - more than 17% of staff. The reason for the staff reduction is related to the bank's report on the second loss-making year in a row. At the end of last year, the investment banking sector faced a drop in income, and companies are seeking to lay off hired workers, according to The Times.
 | The dismissal announced by Credit Suisse is not aimed at avoiding bankruptcy, but at financing a large-scale restructuring of the bank. Consultations on the next round of layoffs began before Christmas on December 19, 2022, and as of January 16, 2023, more than 10% of investment banking jobs in Europe were approved, a Credit Suisse spokesman commented. |  |
Shocked by a series of scandals, the bank intends to reorient itself to the most stable parts of its business and radically rebuild its investment banking division, which has suffered heavy losses starting from the end of 2019. Among the changes is the revival of the First Boston brand, named after the American investment bank he absorbed in 1990, where the capital market and consulting activities will be combined.
Swiss bank Credit Suisse presented a strategic business development plan to its investors in 2022, which includes:
- Increase capital by selling a large shareholding;
- Lay off about 9,000 employees by the end of 2025;
- Sell part of the investment business to a consortium of investors.[1]
2022
Annual loss of $7 billion - the worst result since 2008
Credit Suisse recorded an annual loss of $7 billion. This is the worst result since 2008.
Record outflow of funds
From October 1 to November 11, 2022, the outflow of funds from Credit Suisse set a record (84 billion Swiss francs).
Sacking 9,000 staff
At the end of October 2022, it became known that Credit Suisse would lay off 9,000 employees as part of a "radical restructuring." On September 27, the bank presented its third quarter statements, in which it suffered losses of 4 billion Swiss francs. Amid the reporting, the bank's shares fell 16%.
Payment of $233 million to settle tax fraud and money laundering in France
In October 2022, it was announced that Credit Suisse would pay $233 million to settle a tax fraud and money laundering case in France.
Resignation of Chief Compliance Officer and Head of Investment Unit
At the end of October 2022, it became known that Rafael Lopez Lorenzo, Chief Compliance Officer Credit Suisse Group AG, will leave the company in the coming weeks, having worked in this post for a little over a year. This is not the first high-profile resignation in the bank - Bloomberg reported on the dismissal of the head of Swiss lender, the bank's investment division.
Loss of 60% of capitalization since the beginning of the year
Credit Suisse shares hit a new record low on Oct. 3, 2022, after efforts to reassure markets of their financial stability only added to the sense of turmoil surrounding the troubled Swiss bank.
In trading in Zurich, shares fell 12% to 3.52 francs. The bank has lost about 60% of its market value in this year alone and is on track for the biggest annual drop in its history.
The new head of Credit Suisse Group AG has asked investors for less than 100 days to develop a new transformation strategy. In turbulent markets, this period seems to be very long.
Credit Suisse's market value has fallen heavily and is below Deutsche Bank's.
Plan to split the business into 3 companies after scandals
On September 22, 2022, it became known that the Swiss investment bank Credit Suisse Group would divide its business into three divisions. The first will be engaged in financial consulting, the second - "bad assets," and the remaining operations will be entrusted to the third unit.
Credit Suisse has changed its chief executive officer since August 1, 2022. Chairman Axel Lehmann appointed Ulrich Kerner as CEO, instructing him to carry out a radical overhaul of the bank, which in recent years has suffered from a corporate espionage scandal, the closure of investment funds, record trade losses and many lawsuits, the report said.
Recently, the bank has found itself in the epicenter of several scandals, which undermined its reputation, the Financial Times reported in September 2022, citing sources. In 2022, a Swiss court found Credit Suisse guilty of money laundering by drug dealers. According to the newspaper, the scandals around the bank have not subsided for three years.
Under the proposals to the board, the bank intends to sell profitable units such as the securitized products business to prevent a detrimental increase in capital, it said, citing people familiar with the plans. The new strategy will be presented on October 27, 2022, along with the publication of reporting for the quarter.
{{quote'We said we will update on the progress of the comprehensive strategy review when we announce our third quarter earnings! It would be premature to comment on any possible results up to this point, "said CEO Ulrich Korner. }} In early September 2022, Reuters reported that Credit Suisse, Switzerland's second-largest bank, also plans to cut about 5,000 jobs, about one position out of 10, as part of a cost-cutting program.[2]
Appointment of Ulrich Kerner as CEO of Credit Suisse
Credit Suisse Bank appointed Ulrich Kerner, head of asset management, as the new CEO. He was tasked with reducing investment banking and reducing expenses worth more than $1 billion to help the bank recover from a series of scandals and losses. Read more here.
Customers in Asia wait 8 months to open a bank account
As of early July 2022, new customers are waiting as long as eight months to open accounts with Credit Suisse Group in Asia after the bank stepped up inspections following a recent string of scandals, the Financial Times reported.
The waiting list had increased to more than 600 as of February due to stricter standards on sources of wealth, the FT said, citing people with knowledge of the matter.
Ordinary high-net-worth customers are waiting up to eight months for approval, while those with $10m to $15m in deposit and hundreds of millions of dollars in assets are waiting between three and four months, the FT said. The queues prompted the appeal to competitors.
The bank is cutting more than two dozen senior investment bank positions in Asia as it struggles with losses.
Freezing of assets of Russians by 10.4 billion francs in connection with sanctions against the background of Russia's special operation in Ukraine
On May 5, 2022, it became known that the investment bank Credit Suisse froze customer assets by 10.4 billion Swiss francs or $11.3 billion) in connection with the sanctions imposed against Russia amid the conflict in Ukraine.
Ivanishvili robbed by Credit Suisse manager secured a payment of $0.5 billion from the bank
In March 2022, Georgia's richest businessman Bidzina Ivanishvili won a trial against Credit Suisse in Bermuda. The bank will have to pay about $500 million. The Georgian billionaire claims he lost money over the actions of a former bank manager and is suing Credit Suisse in several countries. For details of the case, see the 2015 section below.
Credit Suisse caught serving corrupt officials and drug dealers
Since the beginning of 2000, the Swiss bank Credit Suisse has served clients involved in human rights violations, corruption and drug trafficking. This is stated in the investigation of the Center for the Study of Corruption and Organized Crime (OCCRP) and the newspaper The New York Times, the results of which were published in February 2022.
The materials are based on a large-scale leakage of account data: it includes information about more than 18 thousand accounts, which together store more than $100 billion. The data covers accounts that were opened from the 1940s to the early 2010s, but not the bank's current operations for February 2022. The leak shows that Credit Suisse opened accounts and continued to serve not only ultra-rich people, but also people whose problematic past would be obvious to anyone who checked their names through a search engine.
Swiss banks have long faced legal bans on accepting money related to criminal activities, former head of the Swiss agency against money laundering Daniel Telescaf. The law was generally not enforced, Telescaf said. The revelations are likely to increase the legal and political focus on the Swiss banking industry on Credit Suisse.
| | Under reforms in financial markets, including Switzerland, Credit Suisse has taken a series of major additional measures over the past decade that include large further investments in countering financial crime. Media publications are an agreed attempt to discredit not only Credit Suisse, but the Swiss financial market as a whole, which has undergone significant changes since 2020, said Credit Suisse spokeswoman Candice Sun. | |
The bank is already experiencing a sharp removal from office of two of its top managers. The Justice Department and the U.S. Senate Finance Committee are also investigating whether U.S. citizens continue to have undeclared bank accounts because Credit Suisse pleaded guilty in 2014 to conspiracy. To help Americans file false tax returns and agreed to pay fines, penalties and restitution totaling $2.6 billion.[3]
Leak of data on turnover in the accounts of relatives of ex-President of Kazakhstan Nazarbayev in billions of dollars
The family of the former President of Kazakhstan Nursultan Nazarbayev became the main star of the data leak from the Swiss bank Credit Suisse in February 2022. Nazarbayev's daughter Dinara Kulibaeva and her husband Timur Kulibaev owned accounts with Credit Suisse from 2008 to 2012. During this time, the amount of about $5 billion visited their accounts (at the exchange rate for December 2012)
The eldest daughter of ex-President of Kazakhstan Darig Nazarbayev from 2008 to 2012 owned six accounts totaling $150 million.
Fine for laundering funds of the Bulgarian drug mafia
In January 2022, it became known that Swiss prosecutors are demanding compensation from Credit Suisse Bank for over 42 million francs ($45 million) due to money laundering by Bulgarian drug dealers. Credit Suisse may receive a fine of up to 5 million francs. The Swiss Federal Criminal Court believes that the bank suffered from "serious organizational shortcomings," as a result of which the Bulgarian drug mafia placed accounts worth 55 million francs in Credit Suisse. A federal prosecutor also accused a Credit Suisse bank employee of assisting criminals.
In June 2022, the Swiss Federal Criminal Court found Credit Suisse involved in the legalization of money from international drug trafficking, but fined it only 2 million francs, according to court materials. Reuters writes that this is the first criminal trial against the bank in Switzerland.
"If there were Russian money, then the bank received a fine of $200 million. But Bulgarian drug dealers are another matter, "the Banksta telegram channel noted.
The court found Credit Suisse employee guilty in this case, who accepted cash from mafia proxies with "suitcases" - she was sentenced to 20 months probation and a fine. According to the Financial Times, her name is Elena Pampulova-Bergomi, she is a former Bulgarian tennis player.
According to the investigation, Bulgarian drug dealers were served at Credit Suisse from 2004 to 2008 - it was Pampulova-Bergomi who received suitcases with money from a dummy, despite obvious signs of their criminal origin. The court found Credit Suisse guilty, since the compliance service did not actually prevent laundering.
Dismissal of Chairman Antonio Horta-Osorio from Credit Suisse due to quarantine violation
On January 17, 2022, the chairman of the board of the second largest bank Switzerland Credit Suisse Antonio Horta-Osorio resigned after two violations of coronavirus () COVID-19 restrictions in 2021. The board of directors appointed Axel Lehmann as the bank's new chairman with immediate effect, he will continue to implement the company's strategy, contributing to the bank's transformation, the press release said. Later in January 2022, it was also revealed that Antonio Horta-Osorio was paying for empty private flights at the bank's expense. More. here
2021
Penalty for participating in a cartel in the Forex market
In early December 2021, the European Commission fined UBS, Barclays, RBS, HSBC and Credit Suisse 344 million euros for participating in a cartel in the Forex spot trading market.
Traders ran cartels from online chats, sharing sensitive information and trading plans that allowed them to make informed decisions about buying or selling currencies, the regulator said. In this case, traders periodically used a chat called "Sterling Lads" to plan their purchases and sales.
UBS Group AG avoided a €94 million fine under the Commission's leniency provisions for revealing the cartel's existence.
HSBC was fined €174 million.
Barclays was fined €54 million.
RBS was fined €32 million as part of an agreed settlement that allowed them to reduce sanctions by 10%.
Credit Suisse is obliged to pay 83 million euros and will not receive any reduction under the usual procedure.
Antonio Horta-Osorio - the new board of the bank
At the end of April 2021, Antonio Horta-Osorio was appointed the new chairman of the board of directors of Credit Suisse. 96.45% of shareholders voted for the candidacy of the former Lloyds CEO. Read more here.
Credit Suisse pays ordinary analysts $20,000 in benefits.
At the end of March 2021, Credit Suisse executives told their rank-and-file analysts that they would receive special bonuses of $20,000, and dollars could also expect a salary increase. Credit Suisse calls these bonuses "one-time cash benefits for lifestyle improvements."
Credit Suisse will pay the money in the second quarter of 2021. In addition, in the future, all employees of the investment bank at a level lower than the managing director can count on a salary increase, and after returning to the office from remote, Credit Suisse will soften the dress code. Thus, the bank wants to encourage employees for their work.
| | Capital Markets and Advisory Services Authority Credit Suisse recognizes the work of its employees and wants to reward them for not only being able to support our customers through an unprecedented volume of transactions, but also increasing our market share, a bank spokesman said in a special statement. | |
Wall Street's bonus campaign is clearly designed to address rumors of inhumane working conditions among young analysts. Earlier, rank-and-file Goldman Sachs employees published a manifesto describing brutal working conditions, including 100-hour working weeks when working from home. A group of junior analysts complained to management that they sleep five hours a day in such conditions and consider themselves "victims of workplace abuse." Four days later, the CEO of Goldman Sachs turned to employees and announced that he would ban working on Saturdays and hire more analysts.
After the story with Goldman Sachs, investment banks began to offer bonuses to employees. For example, Jefferies told analysts and partners that they can choose gifts for themselves, including Peloton simulators and Apple products. Citigroup chief Jane Fraser banned working video calls on Fridays and introduced a corporate day off to address employee burnout.[4]
2020: Bringing in Bulgarian mafia money laundering defendant
In December 2020, the Prosecutor General's Office Switzerland filed a lawsuit in the federal criminal court of the country in connection with the discovered large system of laundering criminal money, the ministry said in a statement. A major bank, Credit Suisse, was brought in as one of the defendants.
According to the Swiss Prosecutor General's Office, the bank did not take "all the necessary and reasonable" measures to prevent the legalization of criminal money. The lawsuit involved a former high-ranking bank leader and two members of a criminal organization suspected of participating in international drug trafficking. This organization is associated with the Bulgarian mafia, the Prosecutor General's Office claims.
2019: Conflict between bank head and head of asset management unit
The head of Credit Suisse, Tidjan Thiam, quarreled over trees at the border of the summer cottage with the head of the asset management and star of the market, Iqbal Khan. Trees obscured Khan's view of Lake Zurich. Bankers started a fight at a party and separated their wives. The Banirs stopped talking, and problems subsequently began at Credit Suisse.
At first, nothing foreshadowed deaths and fights, but on October 1, 2019, Khan took revenge and went to work for rival UBS. Khan's net profit during his tenure grew by 80%, and in just three years he helped the bank raise $46 billion under management.
Thiam organized surveillance of him, he was afraid of the departure of customers and employees. He instructed her to start the operations director and security director of Credit Suisse. Bankers hired Investigo detectives to spy.
In September 2019, Khan noticed surveillance during trips to the business district of Zurich. There were three pursuers. At first he tried to photograph them. Then it started. They began to take away each other's phones. In the backyard behind the building of the National Bank of Switzerland, a scuffle broke out between the banker and the pursuers. The police were involved in the case.
Credit Suisse shareholders are in shock, with the bank's chairman apologising at every turn and investigators investigating the legality of Khan's surveillance. Thiam himself for October 2019 has so far avoided resignation, all the blame was taken by a Credit Suisse security officer named Bue. On the day he left, it was revealed that the intermediary through whom the bank hired detectives had committed suicide. The name of this person is not called, and the reasons for suicide are not yet clear. But Credit Suisse were profitable.
2017: Bank bans publication of report on fraud of its employees
Swiss bank Credit Suisse for several years ignored violations by former manager Patrice Lescodron, who was convicted of fraud in 2018, according to a report by the Swiss financial regulator (Financial Market Supervisory Authority, FINMA).
Lescodron was sentenced by a court in Geneva to five years in prison for fraud and falsification of documents. He admitted that he forged customer signatures in order to buy shares without their knowledge, which led to losses of more than $150 million. Since he spent two years in pre-trial detention before the trial, he was released in 2019. In July 2020, he committed suicide.
Lescodron's actions in 2009-2015 received hundreds of complaints that the bank did not properly verify, the regulator established. In addition, the management of the private banking division of Credit Suisse knew that Lescodron repeatedly violated the rules, but turned a blind eye to this or imposed mild punishment on him.
The report, released by a group of affected CS Victims clients, was prepared by the law firm Geissbuehler, Weber & Partner at the request of FINMA in 2017, but Credit Suisse managed to get a ban on its publication through the court.
The authors of the report note that the problems in the bank were caused by a large-scale restructuring in 2012 and 2015. The management changes "led, among other things, to insufficient information" about Lescodron's actions. In addition, "none of the parties involved felt responsible for analyzing the already known" violations.
Lescodron, who had no prior experience in the banking industry, joined Credit Suisse in 2004. He spoke Russian, so soon under his management it turned out to be more than $1 billion, owned by the bank's largest clients in the post-Soviet space. Among his clients was former prime minister Georgia Bidzina Ivanishvili, who filed lawsuits against Credit Suisse in Singapore and Bermuda worth about $800 million.
In 2008, the manager began to suffer significant losses, after which, as he admitted in court in 2018, he began to forge customer signatures and documents in order to buy time and compensate for the losses. The scheme became known only in 2015 after the collapse of shares in the pharmaceutical company Raptor, in which Lescodron invested.
Credit Suisse, which Geneva prosecutors are investigating criminally, has repeatedly argued that Lescodron acted alone and kept his actions secret from colleagues. Its former leader said in court that he did not know how the bank's compliance procedures did not reveal violations.
"Some bank staff have raised concerns that, if properly reviewed, would likely have led to the discovery of fraud much earlier, which would have limited damage to customers. However, these concerns have been ignored over and over again, "CS Victims said in a statement.
According to the FINMA report, in the summer of 2015, Leskodron leaders expressed concern about whether the transactions that the manager carried out on behalf of Ivanishvili were approved by the representative of the Georgian businessman. The bank then recommended a daily report on the activities of the manager, but his fraud continued.
2015: Bank's asset manager Leskodron embezzles €100 million worth of Georgian billionaire Ivanishvili
In 2015, Georgian billionaire Bidzina Ivanishvili complained about a Swiss bank (then Ivanishvili kept about $800 million there): according to him, the bank not only manages assets poorly, but also directly deceives customers.
In early 2016, he filed a claim for losses due to the actions of Patrice Lescodron, and then a lawsuit against Credit Suisse itself - the businessman claimed that the bank was laundering money.
According to Le Temps, the Credit Suisse manager did not have much experience in asset management, and received large clients from Russia and Georgia thanks to his knowledge of the Russian language. The manager invested the money of Russian clients in the shares of the Austrian holding Meinl European Land, and when in 2007 they collapsed, he lied to clients that he had left the position before the shares fell, Le Temps wrote. According to the publication, in order to cover the losses of two Russian clients, he took money from Ivanishvili's accounts, and in order to cover the minus on the billionaire's account, he made large investments in Gazprom without his permission.
In court, Lescodron admitted that he transferred money from Ivanishvili's accounts to the accounts of other clients in order to cover losses from unsuccessful investments. For this he was convicted.
In November 2019, Bidzina Ivanishvili said in an interview with Bloomberg that he did not expect fraudulent actions from the Swiss bank Credit Suisse, after which he lost $140 million. He stated that he had not even met such behavior in "wild, wild Russia and in Georgian banks" in the 90s of the XX century. This is Ivanishvili's first detailed public statement about this case.
Ivanishvili said that the bank's manager, Patrice Leskodron, convicted of fraud (he managed the investment portfolio of the Georgian billionaire) is not the only one worth attracting for money laundering.
'Within a few years I had three people coming to me and making false statements about my balance. It is impossible for one person to be able to do this all (fraud with customer funds. - The Bell) to turn, and if he could, then this is not a bank, "Ivanishvili said.
He also said that he was disappointed with how he was treated in a Swiss bank, even compared to the unstable situation in Russian banking in the 1990s. "I didn't experience anything like what I saw in Credit Suisse," Ivanishvili explained.
The bank has repeatedly stated that they were not aware of the actions of the hired manager. It follows from Ivanishvili's new statement that at least two more bank employees knew about the fraud.
Ivanishvili said in an interview that he is still suing the bank for the return of lost money - this is about $100 million in unauthorized transfers and "stolen assets."
"No matter what it takes, no matter how long it takes, I am not going to retreat," the billionaire said. At the same time, according to Ivanishvili, it's "not about money" (he stressed that he has more than enough of it), but "in principle."
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