Credit Suisse being investigated by US regulators for hiring Asian staff in exchange for business
The Swiss bank, which reported a net loss of 983 million Swiss francs for 2017 on Wednesday, said it was cooperating with the authorities
Credit Suisse said on Wednesday that it was under investigation in the United States over its Asian hiring practices, joining the ranks of the global investment banks being probed by regulators for recruiting staff in exchange for business.
“Credit Suisse has been responding to requests from certain governmental and regulatory authorities … regarding Credit Suisse’s hiring practices in the Asia-Pacific region and, in particular, whether Credit Suisse hired referrals from government agencies and other state-owned entities in exchange for investment banking business and/or regulatory approvals, in potential violation of the US Foreign Corrupt Practices Act and related civil statutes,” the bank said when reporting its full-year results for 2017.
The authorities in question included the Department of Justice and the US Securities and Exchange Commission, the Swiss bank said, adding that it was “cooperating with the authorities”.
Speaking to the media on Wednesday, Helman Sitohang, Credit Suisse’s chief executive officer for Asia-Pacific, said that he could not give any further details.
In November 2016, JPMorgan Chase agreed to pay US$264 million to the US government to settle allegations that it had hired the children and relatives of influential Chinese policymakers or officials in the hope of winning their business.
