Credit Suisse has fired two managers who oversaw a $ 10 billion suite of funds linked to Greensill Capital, which exploded in March.
Portfolio manager Lukas Haas and Luc Mathis, head of the fixed income division of Credit Suisse Asset Management, were suspended shortly after the fund’s suspension.
The bank has commissioned an investigation into the failure that caused the funds to collapse, which is nearing completion.
Haas and Mathis were fired by Credit Suisse last week following the results of their investigation, according to people with knowledge of internal debate. Their departure was first reported by the Swiss blog Inside Paradeplatz.
Other employees involved in Greensill’s supply chain finance fund are expected to be dismissed within a few days, including former Swiss asset manager Michel Degen.
“CS has taken action on a variety of individuals based on the preliminary findings of the investigation shared with regulators,” the bank said in a statement.
“These actions include severe fines for termination of employment and compensation adjustments. External investigations are still underway.”
This issue is being investigated by Finma, the Swiss financial regulator.Zurich’s state prosecutor also launched and ordered a criminal investigation into the collapse of funds. Police to attack Headquarters of Credit Suisse in October.
The investigation commissioned by Credit Suisse was conducted by Deloitte and the Swiss law firm Walder Wyss.
Credit Suisse will publish details of the findings of the investigation at the beginning of the new year, but the board has not yet decided whether to publish the report in full or a summary of the findings.
Banks prepare for some class action proceedings from clients next year, focusing on plaintiffs’ belief that the insurance contract is a misleading statement in the fund document as to whether it will fully cover the loss. I am.
This week, Credit Suisse announced the resignation of Eric Varvel, who ran the wealth management department until March and was a major supporter of Greensill within the bank.
The Financial Times has up to $ 10 million in his profits Claws Under the conditions of his exit package.
Mattis did not respond to requests for comment by the time of publication, but Haas and Degen could not be contacted.
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