Bank exec resigns after approving surveillance of former employee

Credit Suisse Chief Operating Officer Pierre-Olivier Bouee resigned Tuesday morning, effective immediately, due to his role in initiating the surveillance of Iqbal Khan, a former executive who moved to rival UBS.

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The bank named James Walker, chief financial officer of its key U.S. subsidies and head of product control, as its new COO.

“The Board of Directors appreciates taking appropriate measures to protect the company’s interests, including when senior employees leave the company,” UBS’ board of directors said in a statement out Tuesday. “However, the Board of Directors considers that the mandate for the observation of Iqbal Khan was wrong and disproportionate and has resulted in severe reputational damage to the bank.”

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Bouee’s resignation comes one day after the Swiss financial blog Inside Paradeplatz said a contractor that hired the security agency Investigo to surveille Khan was found to have committed suicide. Kahn, who filed a criminal complaint on Sept. 17 after he had a confrontation with people he believed were tailing his car, was believed to be poaching top executives from the bank.