Bondholders who suffered a $17 billion loss from Credit Suisse’s downfall have filed a lawsuit against the Swiss bank’s former and current executives, claiming a toxic work culture in t…
A group of Credit Suisse creditors who took some of the $17 billion hit that fueled the bank’s demise are suing its former executives — and are blaming a “toxic culture” at its New York offices.
In the suit, the investors alleged executives at Credit Suisse’s New York headquarters incited a toxic work “culture in which profits were prioritized over sound risk management” where executives went, “at times, unethical illegal lengths to acquire and retain high-revenue customers,” which resulted “in a series of very public scandals,” the suit says.
Investors who filed the suit claim the culture is still prevalent today, even after Dougan’s reign ended in 2015 and he was replaced by Tidjane Thiam, a French and Ivorian citizen who resides in New York City and held the head honcho role until February 2020. Brady W. Dougan, who served as Credit Suisse’s CEO from 2007 to 2015, was named in the suit. Bondholders alleged he incited a “dominant culture” where investment bankers “valued short-term gain over long-term trust.”The plaintiffs — which include bondholders of Credit Suisse Additional Tier 1 Capital from Jan. 12 to March 19, 2023 — are seeking financial damages, which will be determined at a later trial.
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