Staff Arrests Are Just Not Good For Business

Spare a thought for Credit Suisse. Just a few months after the head of the Group's private banking unit in Brazil was arrested and detained, while trying to board a plane for Zurich, as part of a Brazilian federal money laundering probe, a senior investment banker has now been arrested in Romania on charges of commercial espionage.

Vadim Benyatov, a Credit Suisse managing director with responsibilities for Central and Eastern Europe, was arrested Wednesday, after prosecutors claimed that he was involved in some way with others who obtained confidential commercial documents, which they provided to foreign companies participating in the sale of Romanian stated-owned businesses.  Four others, including a consultant employed by Credit Suisse, have also been arrested, and all will be held for 20 days pending further investigations.

The Times reports that Credit Suisse's 'lucrative' relationship with the Romanian Government is now 'in tatters', after the firm was dropped from the $1.3bn Romtelecom IPO just hours after the arrests.

In an e-mail sent from London, Credit Suisse said that 'we have no reason to believe that any Credit Suisse employee has acted inappropriately. We take these accusations very seriously and are prepared to cooperate fully with the investigation'.

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