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Credit Suisse banker removed from role for unauthorised messages to clients

A senior investment banker at Credit Suisse was fired earlier this year after being found to have used unauthorized messaging applications with clients, according to people with knowledge of the subject.

Anthony Contolion, nicknamed “AK” by colleagues, was the head of Credit Suisse’s global capital market syndicate in New York and left office in April. He is due to leave the bank, where he has worked for 28 years.

The action taken by Credit Suisse comes in the wake of a U.S. government investigation into document-keeping practices across Wall Street.

Credit Suisse made the decision to remove him from office after a review by several dozen of its bankers revealed that Contolion used personal messaging applications to communicate with customers, the people added. The review did not find that Contolion shared inappropriate information.

In a memorandum to the team in April, Credit Suisse’s global capital and capital market chief David Hermer said Contolion had informed him he would be leaving “to pursue other opportunities.”

Kontoleon declined to comment and referred any question to the bank. Credit Suisse declined to comment.

Kontoleon’s exit follows a string of credit scandals over the past two years, including a $ 5.5 billion trade loss from loans to Family Office Archegos Capital Management and the bank’s recommendation that customers invest in related funds Grinsil CapitalA supply chain financing company that later collapsed.

Credit Suisse has vigorously revealed that it is collaborating with a Securities and Exchange Commission investigation into its U.S. subsidiary’s compliance with business-related documentation related to unsolicited messaging channels.

Credit Suisse’s management hopes a media departure like Kontoleon’s will be seen by U.S. regulators as a sign that the bank is taking the issue seriously, said one knowledgeable person on the matter.

JPMorgan Chase in December agreed Pay $ 200 million in fines To the SEC and the Commodity Futures Trading Commission for failing to document staff communications on personal devices, in an act that frightened many Wall Street banks.

In Credit Suisse, Kontoleon connected private companies to investors in the public market, and worked with public companies when they wanted to execute block or secondary transactions. He has worked on some of the bank’s largest listings, including initial public offerings from American travel company Lyft, Chinese e-commerce giant Alibaba and Google.

His departure underscores the extent to which investigating documentation on Wall Street creates anxiety in large banks, where text messaging apps like WhatsApp have become routine.

Following the JPMorgan fine, other lenders including Goldman Sachs and HSBC Exposed Because U.S. regulators have examined whether their bankers have misused personal messaging apps to do business.

Syndicate tables, like the one where Kontoleon worked, are attracted to text messages for quick and easy communication because they are in constant dialogue with hedge fund clients and asset management clients regarding stock sales and market activity.

The practice became more common when bankers began working from home during the Cubid-19 crisis.

“During the plague people were so used to just sending text messages outside the controlled environment,” a senior Wall Street banker said.

Bankers at companies including JPMorgan and UBS have started using an app called Movius on their phones, which records all calls and records text messages.

As another sign of Credit Suisse’s concerns about listing management, the bank asked its employees in December to let it go. Access their personal cell phones And other devices if used to communicate with customers or colleagues.

Another report by Arsh Masudi in London

Credit Suisse banker removed from role for unauthorised messages to clients Source link Credit Suisse banker removed from role for unauthorised messages to clients

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