In the Credit Suisse is an open power struggle between the CEO Tidjane Thiam and Chairman of the Board Urs Rohner erupted. Thiam has been under constant fire for weeks because of the shadowing affair that was exposed in autumn. His chief of staff, Pierre-Olivier Bouée, had Iqbal Khan, the former head of CS Asset Management, monitored after he switched to UBS in the summer.
After Bouée was initially denied, shortly before Christmas it came out that the former personnel manager Peter Goerke was also monitored by detectives. Thereupon Bouée was released without notice. Thiam always claimed that he knew nothing of Bouée’s actions. This did not seem very credible, but has not been refuted so far.
Those responsible believed that the affair was over. Thiam also won the internal power struggle, because it became clear that Rohner would step down at the general assembly in April 2021 and that his successor would have to decide on Thiam’s remaining at the top of the group.
Pioneering board meeting
In the meantime it has become known that Bouée wants to fight back, which puts Thiam under further pressure. Due to the termination without notice, Bouée not only loses his job, but also blocked shares worth more than four million francs and at least half a year ‘s wages.
The only thing Bouée can say when he goes to court is that he acted on Thiam’s orders. What is heralding is an endless legal dispute and other negative headlines in all media. This will be an acute problem for Credit Suisse because, as a recent survey shows, Rohner and Thiam already have the worst image among top Swiss managers.
The Board of Directors will meet next week. Although this has been planned for a long time, it should be groundbreaking in the current heated atmosphere. On Friday, the news agency Bloomberg scared the stock exchanges with the news that Rohner already had a shortlist of candidates who could replace Thiam. The Credit Suisse share appeared immediately. Major shareholder Harris Associates, however, has already had preventative and repeated efforts to support Thiam. Rohner should also say goodbye to the Board of Directors in 2021 as planned.
So far, Harris has always acted as an unofficial ambassador for the other two major shareholders from Qatar and Saudi Arabia. Rohner has now officially denied Bloomberg’s report. However, the SonntagsZeitung is aware that the effects of the surveillance affair will be an issue at the board meeting next week. It is unclear whether personnel decisions will be made immediately afterwards, but it is difficult to imagine that the top management with Rohner and Thiam will continue to exist for more than a year. One of the two will soon have to go.
A culture of distrust and obedience to carcasses
It is now becoming increasingly clear how a culture of distrust and surveillance was established in the bank under Thiam’s former chief of staff Bouée. It is not just Khan’s surveillance that drives Credit Suisse employees. There were other events that worried employees. Such as the relationship with the environmental organization Greenpeace. Their activists caused excitement almost three years ago when they rappelled off the roof of the Zurich Hallenstadion during Thiam’s speech and unrolled a huge banner with the words “Stop Dirty Pipeline Deals”. Thiam, who was delivering his speech, said: “I support freedom of expression” and continued unmoved. However, it was interrupted by shareholders who complained about the security risk.
On that day, Greenpeace activists literally hit Credit Suisse. Before the event, activists first clashed with the dozens of police officers deployed to protect the event. Then they rolled a ten-meter, 900-kilogram steel pipeline into the foyer until they were thrown out again. In front of the stadium, Greenpeace continued to demonstrate with leaflets and colored feathers.
The CS emphasizes that it did not co-finance the pipeline
The protest was directed against an oil pipeline in the US state of North Dakota that runs through an area that contains sacred sites of a Sioux tribe. The indigenous people are not only outraged by the desecration of the country, but also fear that their drinking water could be contaminated by leaks in the pipes. The pipeline opened on June 1, 2017 despite the protest. To this day, Credit Suisse emphasizes that it did not participate in the financing of the controversial building. Loans that she granted to participating companies were intended for other projects.
Internally, the action had an aftermath because the bank’s security service was responsible for organizing the general assembly. Rohner therefore announced an internal investigation. “We will clarify how it came about,” said a spokesman. Bouée was upset and security chief Remo Boccali, who was subordinate to Bouée, was almost fired.
Fake construction sites as buffer zones
Then countermeasures were decided. Bouée, who commanded a battleship in the French Navy in the 1990s, did not want to be shown again. That is why the environmental organization was infiltrated. The Credit Suisse security guards managed to get onto the distribution list for planned actions by environmental activists. So they knew in advance when the activists wanted to strike and could prepare accordingly.
According to insiders, this was how it went: the bank installed construction sites with barriers in front of the branches concerned to keep the activists at a distance. To do this, they posted security guards at the wrong construction sites. In this way, the activists were prevented from entering the buildings. And the police were very quickly informed, who ended the protests and led the activists away.
Bouée’s office manager had to kneel in front of his secretary
Credit Suisse does not want to comment on exactly what the tactics were. “The bank does not provide any information on security issues,” said spokesman Dominique Gerster.
Greenpeace has apparently not noticed that the organization has been tricked. Spokeswoman Natalie Favre says: “We are investigating the information and cannot give any further details at this point in time.” What is certain, however, is that Credit Suisse is sticking to its traditional business model and continues to finance fossil industries on a large scale instead of taking measures, that would be appropriate to the climate emergency, Favre added.
After Bouée’s departure there are further changes. His office manager Fabian Wendel had to do the same. There is an anecdote about him that says a lot about Bouée. Apparently Wendel behaved badly towards a secretary. Bouée then asked Wendel to kneel in front of her and apologize. This also happened. The photo of this scene circulated on Paradeplatz and caused a lot of fun.
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Created: 02/02/2020, 07:15 AM
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