Bank Leu - Merger With Credit Suisse

Merger With Credit Suisse

Bank Leu's involvement in two major financial scandals seriously hurt its reputation, and in September 1990, it agreed to merge with Credit Suisse. Shortly after the merger closed, it came out that the credit officer of its Duebendorf office made fake loans in the name of legitimate clients, and then shared the proceeds with what was called "the Zurich financial underworld." The scheme cost Bank Leu an estimated 63 million CHFs (roughly $50 million USD).

Bank Leu was reorganized in 1997 as an "independent private bank," integrating its branch network in Zurich as well as its corporate banking business with Credit Suisse. In 2007, it merged with Credit Suisse Fides and Credit Suisse's other three private banks—Clariden, Bank Hofmann, and Banca di Gestione Patrimoniale—to form Clariden Leu.