C Suisse dragged into Russian client dispute

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Credit Suisse has been dragged into a second criminal complaint brought by two Russian clients who claim that a former manager in the bank’s wealth management unit made unauthorized transactions to cover up trading losses.

Bloomberg News reports that the new complaint filed Monday by the two businessmen alleges criminal mismanagement and abuse of confidence, according to their Geneva-based lawyer Giorgio Campa. He said the complaint also cites Credit Suisse as a potential target if wrongdoing can’t be attributed to an individual, which could open the bank to wider liability.

The case creates a hurdle for bank as CEO Tidjane Thiam attempts to build up its wealth management business and move away from riskier investment banking. As the number of complaints grows, the case also threatens to reveal more allegations about trading by the banker who’s accused of taking money from some clients to plug holes in other accounts.

To access the complete Bloomberg News article hit the link below:

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