Goldman Sachs sues former execs over Credit Suisse switch

18 February 2010

Goldman Sachs is suing seven of its former executives who transferred to a unit of Credit Suisse based in the US.

The seven moved to Credit Suisse Securities USA after resigning from Goldman Sachs earlier this month, reports Bloomberg.

In its court filing, Goldman Sachs accused its former employees of immediately soliciting clients working with the bank.

It also alleges that the Credit Suisse division offered "tens of millions of dollars" to the wealth managers to transfer companies in what was labelled an act of "pirating".

Goldman Sachs is now seeking a court order against the executives to prevent them from disclosing proprietary details and recruiting former clients.

According to the lawsuit, one of the wealth managers, David Greene, was offered $11 million by Credit Suisse to change firms.

Last month, Goldman Sachs announced it was cutting its pay-to-revenue ratio to 36 per cent – the lowest recorded figure since the company went public back in 1999.

By Tony Aynsley

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