Credit Suisse's top shareholder says no top execs should be fired over ongoing spying scandal
- Top Credit Suisse shareholder Harris Associates warned the firm's reputation could be damaged if any top executives are fired over the surveillance of former banker Iqbal Khan.
- "We are fully supportive of CS's management actions taking any legal steps necessary to protect the company," David Herro, the deputy chairman of Harris Associates told Bloomberg.
- Credit Suisse reportedly hired a private investigator to follow Khan after he left to join rival Swiss bank UBS over fears he might poach former colleagues.
- Visit the Markets Insider homepage for more stories.
Credit Suisse's top shareholder is throwing its support behind the bank as its team of executives faces an uncertain future following the surveillance of former top banker Iqbal Khan.
"We are fully supportive of CS's management actions taking any legal steps necessary to protect the company and think it would be damaging to CS and its stakeholders to lose any member of senior management over this issue," Harris Associates deputy chairman David Herro told Bloomberg. Harris Associates owns an 8.1% stake in Credit Suisse.The futures of top Credit Suisse executives including CEO Tidjane Thiam are coming into question as law firm Homburger completes its inquiry into the situation. Credit Suisse's board of directors is expected to meet sometime next week to discuss the issue and review Homburger's report.
According to Bloomberg, Urs Rohner, the chairman of the bank's board, is expected to move quickly to take punitive action against Credit Suisse's senior management if they're found responsible for the surveillance.
Earlier this week it was reported that Credit Suisse hired a private investigator to follow Khan after he joined rival firm UBS. Khan reportedly left the firm due to disagreements with Thiam.
The ex-CEO of Credit Suisse's International Wealth Management unit noticed he was being followed while driving in Zurich with his wife last week. Khan took photos of the passengers in the vehicle, which led to a physical altercation as the pursuers attempted to take his phone and the photos he took, according to Bloomberg.