BCV files a complaint

BCV FILES A COMPLAINT FOLLOWING THE PAOLO BERNASCONI REPORT'S FINDINGS

Joint Internal Investigation by BCV and the Vaud Cantonal Government into Possible Misconduct Linked to BCV's Losses and Delays in Recognizing These Losses in the Bank's Balance Sheets.

Yesterday morning, BCV learned the findings of the internal investigation into the causes of losses and their late recognition in BCV's balance sheets between 1996 and 2000. The investigation, conducted by Mr Paolo Bernasconi, independent expert appointed by the Bank and the Vaud Cantonal Government (Conseil d'Etat vaudois), also sought to establish responsibility for the situation. The allegations were sufficiently serious for BCV to lodge a criminal complaint, and the affair is now pending before the Canton's Investigating Magistrate. The report's conclusions and related documents were sent to the Swiss Federal Banking Commission (Commission fédérale des Banques) yesterday.

Most members of the Bank's governing bodies likely to have been implicated in this affair are no longer employed by BCV. As for those still with the Bank, given the seriousness of the allegations and the fact that all members of the Executive Board were aware of the situation at the time (1996-2000), the Board of Directors has acted swiftly to restore a climate of mutual confidence and trust within the Bank.

Several senior managers have therefore been given immediate dismissal for justified cause: Mr Pierre Fischer, Vice-President of the Executive Board; Mr Ralph Ziegler, Member of the Executive Board; Mr Bernard Kraehenbuhl, Chief Compliance Officer and ex-Member of the Executive Board. The Board of Directors has also accepted the resignation of Mr Jean Pierre Launaz, the Bank's Secretary General.

All necessary measures have been taken to prevent any disruption to the Bank's business operations.

Mr Bernasconi's investigation was limited to the question of possible wrongdoings relating to losses sustained by BCV and delays in recognizing them in the Bank's accounts between 1996 and 2000. However, since this investigation is only a preliminary enquiry, its results provide no indications as to the outcome of the judicial investigation which will be opened following the criminal complaint BCV filed yesterday. In addition, the findings of the preliminary enquiry allow no conclusions to be drawn as to whether any criminal liability can be imputed in the case.

Mr Bernasconi's internal investigation and the measures taken by the Board have no bearing on either the Bank's financial stability or its upcoming capital increase. The cantonal government continues to stand solidly behind the capital increase, which is scheduled to be put before the EGM for formal approval on 5 February 2003.

Lausanne, 29 January 2003

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Daniel Herrera, Head of Communications
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