"An investigator had been trailing Khan for about a week in September 2019, snapping an occasional photo, and trying to determine whether Khan would lure any Credit Suisse colleagues over to his new employer, located literally next door: UBS. Khan reported the investigator to the police, sparking what would turn into a messy legal battle and high-profile Wall Street scandal that forced Credit Suisse's COO and security chief, and later CEO, to submit their resignations and for the bank to ultimately settle."
"When Credit Suisse shuttered its U.S. private banking unit back in 2015, UBS got in the way of the bank's highly controversial arrangement with Wells Fargo, in which Credit Suisse gave Wells Fargo exclusive recruiting rights for its financial advisors and apparently withheld deferred compensation from financial advisors who chose not to take the package. UBS successfully enticed more than one-third of Credit Suisse's financial advisors away regardless, sparking a feud in which UBS ultimately had to pay $9 million to settle claims of unfair competition and "raiding.""
"(UBS said at the time that the claims were "without merit" and that the order was "a bad decision that is out of line with the applicable law.") Now, the two rivals are coming together. And you have to wonder how that will go, which executives will last, and which divisions ultimately survive, are spun out, or wind down."
Credit Suisse was caught spying on a former executive, Iqbal Khan, in Zurich in 2019. An investigator trailed Khan for about a week to determine whether he would recruit Credit Suisse colleagues to UBS, his new employer next door. Khan reported the investigator to police, leading to a messy legal battle and a high-profile scandal that resulted in resignations and a settlement. Credit Suisse and UBS also clashed in 2015 when Credit Suisse shut its U.S. private banking unit. UBS interfered with a controversial arrangement with Wells Fargo involving exclusive recruiting rights and deferred compensation, leading to advisor “raiding” claims and a $9 million settlement. Their rivalry now frames the uncertainty around the acquisition’s impact on executives and business units.
#banking-rivalry #mergers-and-acquisitions #wealth-management #legal-disputes #ubs-and-credit-suisse
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