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Snooping on a former executive costs a top Credit Suisse official his job

The Swiss bank’s chief operating officer, Pierre-Olivier Bouée, resigned yesterday in the midst of a corporate espionage inquiry that has led to the lender’s “worst reputational scandal in years,” Daniel Shane of the FT reports.

Mr. Bouée claimed responsibility for the decision to have a former star banker, Iqbal Khan, followed by private investigators. Credit Suisse hired them after Mr. Khan decided to defect to UBS, out of concern that he would poach his former colleagues. (Mr. Bouée will be replaced by James Walker, a senior executive in Credit Suisse’s finance division.)

The firm had commissioned an inquiry by a Swiss law firm into the surveillance of Mr. Khan after the allegations came to light.

That investigation hasn’t found any evidence that Credit Suisse’s C.E.O., Tidjane Thiam, was involved in the scheme. “The C.O.O. said that he alone, in order to protect the interests of the bank, decided to initiate the observation,” the firm said in a statement.