Credit Suisse Turmoil Is a Collective Failure
However the boardroom battle is resolved, the senior leadership of the Swiss giant needs to share responsibility for the governance mess.
Tense relations.
Photographer: Alessandro Della BellaThe Credit Suisse Group AG spying scandal, where top wealth manager Iqbal Khan was tailed after agreeing to join arch-rival UBS Group AG, has raised deeply uncomfortable questions about the Swiss bank’s governance — and drawn scrutiny from regulators. Chief Executive Officer Tidjane Thiam and the board were unaware of the operation, according to the company, but the emergence of an altercation between Thiam and Khan months earlier, and another spying case, added to the embarrassment.
The incidents (including a potential third allegation of spying) have shone an unflattering light on the inner workings of the Swiss firm. As one of the world’s leading private bankers, trust is paramount for its rich clients. This lack of discretion is hardly good for business.