The head of the Credit Suisse investment bank was being investigated for alleged abuse of women when he was fired for his role in the collapse of family office Archegos Capital last year, knowledge of the matter says.
Brian Chin was one of several top executives fired after Credit Suisse lost $5.5 billion The Fall of Archegosthe largest trade loss in its 166-year history.
Chin, who had made a name for himself as the rising star of the bank’s highly profitable New York securitization business, was the subject of an investigation that also looked at the treatment of women on his team. The Wall Street Journal first reported on the internal investigation, which was prompted by an anonymous tip in 2020 and carried out by an external law firm.
The investigation focused on Chin’s personal behavior prior to 2012, according to people who were aware of the findings, although it also considered the culture of the securitization team he was leading at the time.
“Credit Suisse took these allegations very seriously, promptly conducted a full independent investigation and took appropriate action,” the bank said in a statement.
“The bank will not tolerate any action by employees that disrespects colleagues or customers or violates the bank’s code of conduct or policies.”
In an example of team culture studied by the law firm, Chin hosted an annual event for Credit Suisse clients at a Long Island golf course, where the club would not let women into the main dining room. Instead, women were confined to an outdoor area known as the “birdcage.”
The venue was reportedly used for events, despite complaints from Chin about its appropriateness. Credit Suisse also used the location for other events.
Chin, who declined to comment on this article, joined Credit Suisse in 2003 and quickly rose to become head of securitized products and co-head of fixed income for the Americas. In 2016, at the age of 37, he was appointed Chief Executive of Global Markets and a member of the Executive Board when his predecessor Tim O’Hara abruptly left the company after the group was forced to sell $1 billion worth of illiquid products write off.
In 2020, Chin was appointed head of the investment bank following a business reorganization under CEO Thomas Gottstein.
But he was pushed out of the group last April after the losses at Archegos, which originated from his investment bank’s prime brokerage arm.
The bank reclaimed $18 million of his salary.
The details of the investigation into his behavior are the latest in a long line of embarrassing revelations about the behavior of Credit Suisse employees, including a high-profile one Industrial espionage scandal two years ago, a series of executive departures due to losses at Archegos and specialist finance company Greensill Capital and the resignation of the former chairman António Horta-Osório for repeated breaches of the Covid quarantine this year.
https://www.ft.com/content/19d0f7b1-1c3a-469c-b8ea-09672d9f17f1 The former head of the Credit Suisse investment bank was investigated for misconduct