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IPE special report May 2018

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Credit Suisse admits to share-price miscalculations for Swiss BVK

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  • Credit Suisse admits to share-price miscalculations for Swiss BVK

SWITZERLAND - Credit Suisse has admitted to miscalculating share prices linked to losses suffered by the pension fund for the canton of Zurich (BVK) during the early 2000s.
 
The errors were brought to light by the canton's public prosecutor as part of an ongoing investigation into the corruption scandal surrounding the BVK's former head of asset management, Daniel Gloor.
 
Credit Suisse told IPE it had "co-operated closely" in the investigation and would "fully compensate the canton for the damage suffered".
 
Neither the bank nor the canton of Zurich was able to comment further on the nature or extent of the errors, as the investigation into the Gloor corruption case is still ongoing.

Nor could they provide further details on what the share prices were related to, or whether the miscalculations were in any way connected with the corruption scandal itself.

Swiss news daily Tages-Anzeiger has estimated that Credit Suisse's miscalculations set the BVK back by approximately CHF11.5m (€9.6m), plus interest.
 
A spokeswoman at Credit Suisse said the company had made "adjustments" since the early 2000s to prevent similar mistakes from happening again.
 
The final verdict in the BVK corruption scandal is expected some time near the end of this month, after the last trials against investment managers allegedly involved in the case have been concluded.

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