Credit Suisse under investigation in US over Asian hiring
Credit Suisse said on Wednesday that the US is investigating its Asian hiring practices.
The bank’s hiring record is being probed by the Department of Justice and the US Securities and Exchange Commission. The company stated it was “cooperating with the authorities”.
“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 development comes in the same week as the Zurich-based bank reported a net loss of $1bn for 2017, largely attributed to American income tax expenses.
However in the first six weeks of 2018, Credit Suisse’s Asia-Pacific business saw a 15% rise in revenues compared to the same period in 2017, due in part to volatility’s recent return to the markets.