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Credit Suisse admits wrongdoing in asset measure, to pay US$90m
[WASHINGTON] Credit Suisse AG will pay a US$90 million penalty and admit wrongdoing after an investigation by US regulators found the bank misrepresented how it determined a performance metric in its wealth management business to investors.
The Securities and Exchange Commission (SEC) said former Credit Suisse executive Rolf Bogli, 52, also agreed to settle and pay US$80,000 for his role in the violations.
The SEC said its probe found the bank did not follow the methodology it had publicly disclosed for determining new net assets. The metric, the regulator said, helps investors gauge how successful the bank is in attracting new business.
Neither the bank nor Mr Bogli were accused by the SEC of intentionally committing fraud, and Mr Bogli settled the charges without admitting or denying wrongdoing.
A Credit Suisse spokeswoman said the bank cooperated with the SEC and has since remedied the problems.
"It is important to note that there are no allegations of intentional misconduct or that (new net asset) numbers were incorrectly reported. Credit Suisse clients were not harmed," she said.
Mr Bogli, who had served as chief operating officer for Credit Suisse's private banking division, "pressured employees" to classify high net worth clients as new net assets despite objections raised by some employees, the SEC said.
Kenneth Breen, an attorney at Paul Hastings who represents Mr Bogli, said his client looks forward to moving on now that a settlement has been reached.