Compliance

Credit Suisse CEO Is Reportedly Not Quitting After Recent US Tax Case

Tom Burroughes Group Editor 26 May 2014

Credit Suisse CEO Is Reportedly Not Quitting After Recent US Tax Case

The CEO of Switzerland's second-largest bank, with a substantial presence in markets including Asia, has reportedly stated he has no intention to quit following last week's settlement with US officials over aiding tax evaders.

Brady Dougan, the chief executive of Credit Suisse, has no plans to quit and has brushed off calls for him to step down following the bank’s $2.815 billion settlement with US authorities over charges that the bank aided American tax evaders. Switzerland’s second largest bank pleaded guilty to that offence.

Swiss lawmakers have been among those calling for Dougan and other executives to step down, Reuters reported.

Asked in an interview with Swiss newspaper Sonntagsblick if he had thought about leaving the bank, Dougan said: "No. I have been working nearly 25 years for this bank, I'm committed to Credit Suisse, its customers, its staff, its shareholders."

Switzerland's financial regulator said last week it found no indications that Credit Suisse's senior managers knew of specific misconduct.

In its statement on the matter last week, the Zurich-listed bank said it had not been punished with the loss of bank licences, a fact that actually cheered investors; the share price of the bank actually rose after the announcement came out, suggesting that the issue had been priced in by the market. Late last week, the bank is reported to have successfully sold $5 billion of debt. The feeling among analysts is that the plight of the bank could have been worse, a fact underscored by the fact that a host of other banks have been punished for offences of one kind or another recent months. (To view a commentary on the matter, see here.)

 

 

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