A Swiss flag flies over a sign by the Swiss bank Credit Suisse on May 8, 2014 in Bern.
FABRICE COFFRINI | AFP | Getty Images
Credit Suisse on Tuesday cleared CEO Tidjane Thiam in an internal investigation into the ongoing surveillance of the bank's former wealth management Iqbal Khan in a probe that cost Thiam's right hand his job.
Chief Operating Officer Pierre-Olivier Bouee resigned after the investigation by the law firm of Homburger found that he alone initiated the observation of Khan, who abruptly resigned in July and later joined the arch rival UBS.
"The Board considers that the mandate for observing Iqbal Khan was wrong and disproportionate and has resulted in serious damage to the reputation of the bank," Switzerland's second largest bank said in a statement.
"The Homburger investigation did not identify any indications that the CEO had approved the observation of Iqbal Khan, nor that he was aware of it until September 1
Two major shareholders had said they wanted Tidjane, the architect of a sweeping three-year renovation at the bank he joined in 2015, to join unless it was shown that he was breaking the law.
Credit Suisse started the investigation to find out the circumstances that led to a confrontation in Zurich on September 17 between Khan and private detectives who hired Credit Suisse to arrest him.
"Neither the Homburger investigation nor the observation of Iqbal Khan identified any evidence that Iqbal Khan had attempted to lure employees or clients away from Credit Suisse, in violation of his contractual obligations," it states.