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SEC ready to allege Credit Suisse private bank misled investors
More scrutiny on the banks, this time on their wealth management arms. It will be particularly unwelcome because several have announced plans to make catering for rich individuals a key part of their growth strategies, as margins fall in other divisions.
The US Securities and Exchange Commission is preparing to accuse Credit Suisse of misleading investors by improperly inflating its reports of assets under management in its private bank, people familiar with the case said, writes the Financial Times. (paywall)
Essentially the watchdog plans to allege that starting in 2012 Credit Suisse at times improperly counted client assets in the Americas as net new assets for the Swiss private bank. Investors watch net new assets closely because they are seen as a measure of how the division is performing.
In October, Credit Suisse CEO Tidjane Thiam said the bank would emphasise wealth management and growing its Asia business while shrinking investment banking, echoing moves by UBS among others, reported Fortune.
Photo: Credit Suisse