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• The secretive world of Swiss banking has been rocked by a wild scandal involving spies, a suicide, and a clash at a cocktail party.
• Credit Suisse hired private investigators to spy on Iqbal Khan (above), its former head of wealth management, after he feuded with CEO Tidjane Thiam and left for the bank's local archrival, UBS, earlier this year.
• The fiasco has culminated with the resignation of both the Swiss bank's operating chief and head of global security, and the death of the contractor who hired the spies to follow Khan.
• Here's a timeline of what happened.
• Watch Credit Suisse and UBS trade live.

The secretive world of Swiss banking has been rocked by a public scandal involving spies, a suicide, and a clash at a cocktail party.

Credit Suisse hired private investigators to spy on Iqbal Khan, the head of its wealth-management division, after he feuded with CEO Tidjane Thiam and left for the bank's local archrival, UBS, earlier this year.

The fiasco has culminated with the resignation of both the Swiss bank's operating chief and head of global security and the death of the contractor who hired the spies to follow Khan. Here's a timeline of what happened:

Tidjane Thiam and Iqbal Khan join Credit Suisse

Background: Tidjane Thiam was appointed CEO of Credit Suisse in March 2015 after running the UK insurer Prudential for six years. The French-Ivorian, a former McKinsey consultant, launched a three-year turnaround program that resulted in the Swiss bank posting its first annual profit in four years in 2018.

Iqbal Khan, who was born in Pakistan and moved to Switzerland at the age of 12, spent 12 years as an auditor at Ernst & Young. He joined Credit Suisse's wealth-management division in 2013 and rose to CEO of the unit two years later. He oversaw an 80% increase in divisional profit and helped bring in upward of $46 billion in net new assets from 2016 to 2018, according to the Financial Times.

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Khan buys the house next door to Thiam, bulldozes it, and spends 2 years on new construction

January 2019: Thiam hosted a cocktail party at his home in the tony Herrliberg area on the "gold coast" of Lake Zurich, according to the Financial Times. Khan and his wife — who bought the house next door, bulldozed it, and then spent nearly two years redeveloping it — were among the guests. Thiam complained to Credit Suisse's chairman, Urs Rohner, about the disruptive construction work, the Financial Times reported.

After Khan and Thiam's partner squabbled over some trees planted on the CEO's property, Khan and Thiam had an argument away from the other guests. Khan's wife had to separate them, the Swiss newspaper Tages-Anzeiger reported.

Khan complains to Credit Suisse; he meets with UBS and others

Spring and summer: Khan complained to Rohner and Credit Suisse's board about the incident, widening the rift between the two and creating an unpleasant working environment, the Financial Times reported.

Khan was allowed to quit with a shortened "gardening leave" period of three months. During meetings with UBS, Julius Baer, Goldman Sachs, and other prospective employers, he expresses a desire to recruit former Credit Suisse colleagues across structured trading, lending, relationship management, and other functions, the Financial Times reported.

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Khan leaves the company

July 1: Credit Suisse announced Khan was leaving the company. He made the move after growing frustrated with his profile within the bank, his low number of public appearances, and a lack of assurances from Thiam and other executives about his potential to rise further up the ranks, according to the Financial Times.

"He's in a rush, wants a huge job, and had become a bit frustrated because there's no room at the top here — Tidjane isn't going anywhere and he wasn't comfortable in his seat," a person familiar with the developments told the newspaper.

UBS hires Khan; Credit Suisse's COO gives the order to observe him

August 29: UBS announced Khan would become its copresident of global wealth management on October 1. Pierre-Olivier Bouee, Credit Suisse's operating chief, ordered the bank's security chief to begin observing Khan out of concern he might be planning to poach clients and former coworkers. Bouee's worries were elevated by the fact that Khan continued to socialize with key Credit Suisse employees.

Credit Suisse hired Investigo, a security firm, to keep tabs on Khan. Investigo assigned private detectives to trail Khan and identify everyone he met.

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Khan confronts one of his tails after a foot chase on the street

September 17: During a shopping trip, Khan spotted and confronted one of his tails in downtown Zurich. He exited his car and photographed the license plate of the private investigator's vehicle. The investigator confronted him, asked him to stop, and told Khan to hand over his phone. Khan shouted for police help, and the investigator departed.

Khan filed a complaint with Zurich's public prosecutor saying three men chased him and his wife through the streets of Zurich by car and on foot. He said things turned physical behind the Swiss National Bank, when the men tried to take his mobile phone as he was photographing them and their car.

The detective, however, provided a sworn statement to Credit Suisse and authorities that he was alone that day and that Khan chased him, the Financial Times reported. The bank instructed the investigator to follow Khan only on weekdays from a suitable distance and take note of the people he met, without breaking any criminal or traffic laws, according to a document seen by the newspaper.

Credit Suisse halted its observation of Khan on September 18.

The bank announces an external inquiry into its decision to observe Khan

September 23: Credit Suisse's board said it had appointed external consultants and lawyers to inquire whether executives signed off on the decision to hire private investigators and whether the move was justified.

Zurich's public prosecutor's office confirmed it had opened a criminal case for coercion and threat and said the city police had made three arrests, the Financial Times reported.

FABRICE COFFRINI/AFP/Getty Images)

A Credit Suisse contractor who hired Investigo dies by suicide

September 24: An unnamed contractor who hired Investigo to trail Khan on behalf of Credit Suisse died by suicide. A lawyer for Investigo later confirmed the death to the Financial Times.

Pressure mounts on Credit Suisse to address the scandal

September 26: "It's something of extreme gravity; in Zurich it is becoming a time bomb and you can feel the panic," a major investor in the bank told the Financial Times. "Both sides have been damaged, but especially Credit Suisse." 

"We have said to the chairman and board they have to provide a clear outcome and explanation; whoever did wrong has to pay," the investor added.

The Swiss bank's board meets to discuss the findings of the investigation

September 30: Inside Paradeplatz, a Swiss financial blog, reports the contractor's death by suicide. Credit Suisse's board meets to discuss the findings of an investigation into the spying scandal by Homburger, a law firm.

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Credit Suisse's COO and head of global security resign; Thiam is cleared of wrongdoing

October 1: Bouee resigned as Credit Suisse's chief operating officer after Homburger found he independently made the call to follow Khan. The bank's head of global security also resigned.

"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," Credit Suisse said in a statement.

The Homburger inquiry failed to find any evidence that Khan tried to poach employees or clients, the bank added, or any indication that Thiam approved the spying or was aware of it before it ceased on September 18.

Credit Suisse said Bouee alone, "in order to protect the interests of the bank," ordered the observation of Khan and didn't discuss it with Thiam or any other executives.

Zurich's public prosecutor continued investigating the matter.