Credit Suisse Faces Finma Scrutiny Over Potentially Misleading Remarks by Chairman

Swiss regulator Finma is investigating Credit Suisse Chairman Axel Lehmann's remarks about outflows from the bank, with sources saying the regulator is seeking to establish whether Lehmann and other Credit Suisse representatives were aware that clients were still withdrawing funds when he said in media interviews that outflows had stopped. Lehmann's comments, which were made in early December, may have been potentially misleading, with one source suggesting he may not have been briefed correctly before making those comments.

Credit Suisse shares rose 9.3% after Lehmann stated in interviews with the Financial Times and Bloomberg Television that outflows had stabilized. However, Credit Suisse reported on Feb. 9​ that clients withdrew 110.5 billion Swiss francs ($119.65 billion) from the bank in the last three months of 2022, exceeding market expectations and causing the stock to fall about 15% on the day.

During an analyst call, Credit Suisse Chief Executive Ulrich Körner disclosed that more than 85% of the outflows in the last quarter happened in October and November, leading analysts to conclude that management effectively indicated 15% of the outflows had happened in December. Finma's investigation adds to the challenges faced by Credit Suisse, which has been embroiled in scandals in recent years and is undergoing a sweeping overhaul to restore profitability.

The scrutiny highlights the importance of accurate and transparent communication by financial institutions to their investors and the wider public. The outcome of the investigation could have significant implications for Credit Suisse's reputation and future financial performance. The bank has declined to comment on the matter, while Lehmann did not respond to an email seeking comment.

Fazzaco also explored the significant challenges facing the bank in an article published last week, titled "Bank Faces Huge Loss - Will Credit Suisse Survive Out 2023?​".