Credit Suisse is reportedly investigating the role of its executive board member, including CEO Thomas Gottstein, as part of its probe related to the Greensill fund scandal.
The Swiss lender launched an internal investigation earlier this month after it came under regulators’ lens following the insolvency of the Greensill Capital.
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By GlobalDataCredit Sussie, which was a key source of funding for the British financial services firm, was associated with selling around $10bn worth of Greensill-created securities through its asset management unit.
Bloomberg, citing people with knowledge of the matter, reported that the bank’s directors are currently examining the way in which supply chain finance funds were sold to investors, including its own wealth management clients.
Investigators are also reviewing how the bank managed conflicts of interest as well as a business tie-up with Lex Greensill, which spanned across three divisions.
The Swiss group in its annual report said that a special crisis committee, comprising chairman Urs Rohner and the leaders of audit and risk committees, has been activated to inspect issues related to the scandal.
One of the sources told the publication that the executives are cooperating with the investigation, adding that there is no evidence that may threaten Gottstein’s position, so far.
The person also said that the board is still worried about the potential losses in the funds and consequences, including the threat of being sued by investors.
Meanwhile, a report by Reuters suggested that Credit Suisse is considering compensating investors affected by Greensill scandal.
The move, which is part of a damage-limitation exercise by the bank, under discussion with Swiss financial regulator FINMA, which does not want Credit Suisse to deplete its finances.
Following the collapse, the Swiss bank decided to separate its asset management business from its international wealth management unit.
Earlier this week, the Swiss wealth manager appointed Ulrich Körner as the new CEO of its asset management division,
