North American Edition
Sunday 7th February 2021

THE HOT STORY

Credit Suisse ‘overlooked’ red flags

A report by law firm Geissbühler Weber & Partner for Switzerland’s financial regulator has concluded that Credit Suisse overlooked red flags for years while a rogue private banker stole from billionaire clients. Patrice Lescaudron, who was sentenced to five years in prison in 2018 for fraud and forgery, admitted cutting and pasting client signatures to divert money and make stock bets without their knowledge, causing more than $150m in losses. Regulator Finma publicly censured Credit Suisse in 2018 for inadequately supervising and disciplining Mr. Lescaudron. Credit Suisse said it discovered the fraud in September 2015 when a stock he had bought for clients crashed. However, the report found Mr. Lescaudron’s activities triggered hundreds of alerts in the bank that weren’t fully probed in the 2009-15 period studied. In addition, around a dozen executives or managers in Credit Suisse’s private bank knew Mr. Lescaudron was repeatedly breaking rules but turned a blind eye, proposed lenient punishment for his misconduct or otherwise glossed over the issues because he brought in around $25m in revenue a year, the report found.

Wall Street Journal

LEGAL

H&M probes harassment at Indian factory

H&M is investigating reports of sexual harassment at a supplier’s factory in southern India following the death of a female employee and the arrest of a male co-worker on suspicion of her murder. More than two dozen workers at the plant in Tamil Nadu state have spoken out about harassment since the 20-year-old’s body was found near her home on January 5th, according to the Asia Floor Wage Alliance that works for garment workers’ rights in the region. “Any future relationship with this supplier will entirely depend on the result of that investigation,” the company said in a statement, adding that it was in touch with the factory and did not tolerate harassment of any kind.

Reuters

The Human Times is designed to help you stay ahead, spark ideas and support innovation, learning and development in your organisation.

The links under articles indicate original news sources. Some links lead directly to the source material. Others lead to pay walls where you may need a subscription. A third category are restricted by copyright rules.

For reaction and insights on any stories covered in the Human Times, join the discussion by becoming a member of our LinkedIn Group or Business Page, or follow us on Twitter.

The World of Work is the online archive of all editions (US, UK/Europe, Middle East and Scandinavia) of Human Times news services since February 2016.

If your organisation is undergoing change involving its people, the World of Work provides quick and easy access to examples of best practice and emerging risk across all industries – tagged and mapped to a HR-orientated taxonomy.

Use it as a research tool, a news content generation engine, a gateway to the knowledge you need right now.

© Early Morning Media Ltd.

This Service was produced by Early Morning Media.

Email: info@earlymorningmedia.co.uk

Registered in England No: 06719248

Address: Global House,
1 Ashley Avenue,
Epsom,
KT18 5AD

Phone: +44(0)207 186 1060

This e-mail has been sent to [[EMAIL_TO]], click here to unsubscribe.