Zurich banking quake: embezzlement, layoffs and crypto scandal!

Zurich banking quake: embezzlement, layoffs and crypto scandal!

On May 14, a newly elected board member praised the corporate culture of a Zurich country bank, but just a week later the bank was confronted with a serious scandal that calls into question the integrity of its employees. Several employees, including management staff and long-time consultants, had stolen cash from the safe in order to speculate in cryptocurrencies. The incident prompted extensive internal investigations and led to the dismissal of four employees, while another employee resigned himself. At least one person has already been arrested.

The bank manager Jürg Randegger confirmed the incident and explained that there was evidence of embezzlement. As a result, the bank filed a criminal complaint with the public prosecutor and informed all employees. The incident will have a negative impact on the bank's half-year results, but according to Randegger the bank remains financially sound and stable. Customers are not affected by the embezzlement; Rather, only the bank itself suffered as a result of the unethical actions. The exact amount that was stolen has not yet been made public.

Crypto investments and their consequences

The son had powers of attorney over all of his mother's accounts, granted by her rejected husband, who had lost his pension fund assets. According to statements from the nephew-in-law, the money flowed to two financial service providers, Interactive Brokers and PJM Investment Academy. In contrast to ZKB, Credit Suisse refused to carry out the transaction and canceled the son's power of attorney.

Due diligence obligations of banks

This controversial case also highlights the banks' duty of care. The Swiss Bankers Association (SBA) emphasizes that authorized persons generally have the same rights as account holders. However, if there are any abnormalities, banks must investigate before approving transactions.

The pensioner's nephew has already contacted the banking ombudsman, but there could be a solution without his intervention. In a recent twist, the ZKB has agreed to sit down with the nephew, possibly influenced by media coverage of the matter.

These two unrelated incidents illustrate the challenges and risks associated with crypto investments and associated banking relationships today. Both the bank and the individuals affected now face the difficult task of clarifying the issues raised by the scandals.