US markets were closed yesterday so today’s edition is a little more European. The Swiss financial regulator is reviewing remarks made by Credit Suisse Chairman Axel Lehmann about outflows from the bank’s wealth management division having “basically stopped” and “partially reversed”. In fact, clients withdrew 110 billion Swiss Francs in the last quarter. Separately, Lehmann’s wife is reviewing remarks that the leaky kitchen tap “had been fixed” and "the washer changed” when in fact the kitchen had been flooded.

The lowdown

• 🇨🇭 Swiss financial watchdog investigating Credit Suisse Chairman’s comments regarding client outflows.

• 💰 HSBC nearly doubles profit and will pay a special dividend to shareholders.

• ⛔️ Crypto hedge fund Galois shuts down after losing half of its assets in FTX collapse.

Featured stories

Darktrace hires EY

European cyber security firm Darktrace has hired EY to conduct a review of its “key financial processes and controls.” This comes after short seller Quintessential Capital Management earlier this year attacked the company, stating it was “deeply skeptical about the validity of Darktrace’s financial statements.”

QCM claimed that Darktrace has used round tripping and channel stuffing to inflate its revenue. Darktrace’s share price fell immediately after the attack but has mostly recovered since, helped by the announcement of a $75 million share buyback and the EY-led review. 

What has not helped is the company’s ties to Autonomy ($) – a software company sold to HP in 2011 that was found to have manipulated its accounts. For that, Autonomy’s former CFO is serving a prison term.

With memories still fresh of EY failing to detect $2 billion in missing assets at Wirecard, it does not seem like the obvious choice to conduct the review. Unless of course you want something overlooked? (A conspiracy-EY theor-EY?).

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The content we're consuming today

• The Closer: The inside story of Facebook’s biggest acquisition.

• FT: Religious investors put their faith in impact funds ($).

• Forbes: The Talk The Supply Chain Leader Needs To Have With Their CFO ($).

Off-balance sheet items

• Many of us have probably considered leaving our spreadsheets behind to start a new life as an artisan producer. Until that becomes possible, live vicariously through one of France’s oldest butter producers in this video.

The bottom line