- The Swiss Financial Market Supervisory Authority (Finma) is reportedly reviewing comments by Credit Suisse Group Inc's CS Chairman Axel Lehmann about outflows stabilizing in early December.
- The Swiss financial regulatory authority is trying to establish if Lehmann, and other Credit Suisse representatives, were aware that clients were still withdrawing funds when he said in media interviews that outflows had stopped, Reuters reported.
- Lehmann told the Financial Times in an interview streamed online on Dec. 1 that they had "completely flattened out" and "partially reversed" after strong outflows in October.
- The following day he told Bloomberg Television that the outflows had "basically stopped."
- The regulator is reviewing whether Lehmann's statements were potentially misleading, said the people, with one adding that Lehmann may not have been briefed correctly before he made those comments.
- Credit Suisse said clients withdrew CHF 110.5 billion in Q4 FY22, with two-thirds of the outflows coming in October when rumors hit the bank on social media about its financial health.
- Finma's scrutiny adds to the challenges faced by Credit Suisse, which scandals in recent years have rocked.
- Luzerner Kantonalbank described the inquiry as another blow for Credit Suisse, although not a formal investigation.
- "Was Axel Lehmann insufficiently informed, or did he consciously or deliberately gloss over the matter?" said analyst Daniel Bosshard.
- "Whatever the case, this is yet another inglorious chapter in the history of Credit Suisse."
- Price Action: CS shares are down 4.64% at $2.88 during the premarket session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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