A group of Credit Suisse clients have launched a website, https://csvictims.com about alleged fraud and mismanagement at the highest levels of Credit Suisse over many years, which resulted in an estimated loss of $1 billion USD to clients.
What actually happened?
According to CS Victims, it all started when a former Credit Suisse Wealth Management executive, Patrice Lescaudron, failed to execute a trade on behalf of one of his clients, resulting in a $50 million loss. When he discovered his mistake, he emailed his superior at Credit Suisse asking for direction but he never received a reply. Instead of disclosing his error to his client, he hid it. That was how a $50 million mistake eventually exploded into a $1 billion crime that has touched the highest reaches of the esteemed Swiss financial institution.
CS Victims claim that Credit Suisse has been “unwilling to supply” documentation about how this $1 billion fraud could have happened unchecked for at least six years.
In April of 2019, this same group of clients launched an advertising campaign asking a series of questions to the Board of Directors of Credit Suisse AG. The campaign included an open letter to the Board of Directors of Credit Suisse AG published in The Financial Times, press coverage, and social media.
So far, Credit Suisse has not responded to the website. The question needs to be asked, what is going on at Credit Suisse?
UPDATE: According to the CS Victims website, Credit Suisse so far has refused to return any of the funds to the clients in a press release: https://www.prnewswire.com/news-releases/cs-victims-say-credit-suisse-refuses-to-return-funds-stolen-in-1-billion-fraud-300878917.html
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.