Credit Suisse Will Pay $90M For New Net Assets Misrepresentation Case
Credit Suisse AG has been ordered to pay $90 million in penalties and admit to the wrongdoing.
According to U.S. Regulators from the Securities and Exchange Commission, an investigation was launched when it found the bank didn’t follow the practice it had publicly set in place for figuring out new net assets. The regulator said the metrics are what investors use to determine a bank’s successfulness in bringing new business.
The SEC did not outright accuse Bogli, 52, or the bank of intentional fraud, and Bogli settled the charges he faced without denial or admittance of wrongdoing.
According to a spokeswoman from Credit Suisse, the bank was cooperating with the SEC and has fixed all the problems it found. She said it was important the public knew that no Credit Suisse clients were harmed and that there were no claims of intentional misconduct or incorrectly reported asset numbers.
The SEC said Bogli allegedly distressed employees to categorize the high-net-worth customers as new net assets although some employees raised their concerns.
The matter comes to a close after an investigative report of more than two years on questions the U.S. Senate panel raised regarding the bank’s reporting to investors on its new net assets. They were a part of a more general report the Senate’s Permanent Subcommittee on Investigations raised after looking at offshore tax evasion and efforts to attain unpaid taxes.
In that report, it noted the bank’s public statements to its investors about many new assets was coming into its private bank. The report said throughout 2012, several accounting and high-level management officials didn’t follow their own policies that determined the size of the new net assets. Rather, Credit Suisse re-categorized it so that it boosted the private banking division’s economic performance.