Switzerland’s financial regulator is reviewing comments that Credit Suisse Chairman Axel Lehmann made in December on outflows from the company having stabilized, on the basis that they may have been misleading, Reuters reported.
(Bloomberg) — Switzerland’s financial regulator is reviewing comments that Credit Suisse Chairman Axel Lehmann made in December on outflows from the company having stabilized, on the basis that they may have been misleading, Reuters reported.
Finma is looking to establish the extent to which Credit Suisse representatives like Lehmann were aware that clients were still withdrawing funds when he made the comments, according to the report, which cited two unidentified people familiar with the matter.
In interviews with the Financial Times and Bloomberg News, Lehmann said that client withdrawals, which had surged in early October, had flattened out and “basically stopped.” The remarks were made before the close of a crucial $4 billion capital raise, though results published this month demonstrated that further outflows worth tens of billions of dollars continued to the end of the quarter.
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The regulator is reviewing whether Lehmann’s statements were potentially misleading, Reuters reported.
Credit Suisse shares surged as much as 10% on Dec. 2, after Lehmann said the bank’s liquidity was improving and the huge outflows of client assets that had spooked markets were coming to an end.
Finma didn’t immediately respond to a request for comment from Bloomberg. Credit Suisse declined to comment on the report.
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