Credit Suisse Trust in Singapore trial admits it failed to flag rogue transfers

A Credit Suisse Group trust admitted it failed to let its billionaire client know about unauthorised transfers from his accounts, in an unexpected move that may shape the outcome of a trial in Singapore over the unit’s potential liability for losses tied to a rogue banker.

Over the first nine days of the trial, Mr Lee Eng Beng, the lead lawyer for Credit Suisse Trust (Singapore), had argued that its responsibility was limited to administration of the assets belonging to Mr Bidzina Ivanishvili and that it was the tycoon, or his Georgian business adviser, who called the shots on investment decisions and should be liable for any losses.

But on Friday afternoon, Mr Lee admitted to the presiding judge that the trust acted in breach of its trustee duties for Mr Ivanishvili’s investments held through an entity called Meadowsweet.