A UBS advisor reached out to us to describe the ongoing legal battle with rival Credit Suisse with respect to deferred compensation claims. The legal tangling remains front and center for a large group of advisors that left the now defunct CS wealth management arm in the US, and they are intent on getting what they are owed.
You may remember that Wells Fargo just settled several cases connected to deferred compensation with departed advisors. That legal opinion is now on the record; but the group we spoke with believes Credit Suisse has nearly zero chance to get off so easily.
Here is what the UBS advisor we spoke to said:
“Wells has a tendency to settle matters. Credit Suisse looks at their legal department as a profit center. Opposing us on our arbitration is Epstein Becker and Green. They have a Ron Green at every single hearing with two other partners. He represented Bill O’Reilly on his last sexual-harassment lawsuit, and represented Mr. Dolan and Isaiah Thomas from the Knicks when they were sued by their highest ranking female African-American employee for sexual-harassment back in 2007 or 2008. He’s the lawyer you call when you have a bad fact pattern. Credit Suisse is paying a bloody fortune on lawyers rather than settling with us.” **the above is a bit disjointed because it is purposefully unedited.
Bad fact pattern. Credit Suisse will either pay now or pay later. That particular writing is in the wall. And these UBS advisors know it and are happy to play the game until the final bell. Meanwhile, Credit Suisse is paying exorbitant legal fees via a profit center that no longer exists.
No wonder some consider them the stupidest bank in the world.