Credit Suisse Probes Its Surveillance of Departing Official -- WSJ
September 24 2019 - 3:02AM
Dow Jones News
By Margot Patrick and Jenny Strasburg
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (September 24, 2019).
Credit Suisse Group AG has launched an investigation into its
surveillance of a departing top executive who is joining crosstown
rival UBS Group AG, after the executive filed a report with Zurich
police.
Credit Suisse said Monday in a memo to employees that its board
launched a "detailed inquiry" following Swiss and German media
reports that the bank put former wealth-management head Iqbal Khan
under surveillance, leading to a confrontation with three
unidentified men last week outside a restaurant in Zurich. Mr. Khan
left Credit Suisse abruptly in July. In August, he was named head
of wealth management at UBS, starting next week.
A spokesman for the Zurich public prosecutor's office said
Monday that prosecutors opened a criminal investigation into
possible assault and threat based on a complaint made by Mr. Khan.
The spokesman said the investigation led to "temporary arrests" and
declined to provide further details, citing a continuing
investigation.
Credit Suisse had Mr. Khan under surveillance based on
suspicions he was trying to poach someone from the bank for UBS,
according to a person familiar with the decision. An outside
spokesman for Mr. Khan, who is still a Credit Suisse employee, said
any such suggestion is "totally absurd."
Credit Suisse on Monday said representatives carrying out the
investigation will report directly to its chairman, Urs Rohner. "As
soon as the investigation is completed, the board of directors will
inform of its findings," the bank said.
Mr. Khan left Credit Suisse after having been considered by some
insiders and investors a potential successor to Chief Executive
Tidjane Thiam. That relationship soured as Mr. Khan sought more
responsibility, according to people close to Credit Suisse. In
August, UBS said it had hired Mr. Khan to oversee its
wealth-management arm. He is due to start at UBS on Oct. 1. The job
was part of a broad reshuffling that lined up several UBS
executives and Mr. Khan as potential internal CEO successors.
According to Swiss and German media accounts, led by an initial
report by Swiss finance blog InsideParadePlatz.ch, Mr. Khan was
followed last week by car and on foot while with his wife and
child. Mr. Khan reported the alleged incident to Zurich police,
according to reports and the public prosecutor's office.
Write to Margot Patrick at margot.patrick@wsj.com and Jenny
Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
September 24, 2019 02:47 ET (06:47 GMT)
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