The scandal around former Raiffeisen CEO Pierin Vincenz has cost another prominent victim: the Swiss bank's current CEO, Patrik Gisel, will step down at year-end, according to a statement. 

«By resigning, I'd like to put to rest the public debate about myself and the bank and protect Raiffeisen's reputation», Gisel said in a statement. He has run Raiffeisen for nearly three years, after a the 16-year reign of Vincenz, with whom he is closely associated. Vincenz is being criminally investigated on suspicion that he personally enriched himself with secret side deals involving the bank.

Power Vacuum

Because he had worked so closely with Vincenz, Gisel took intense flack when his predecessor was arrested in February. Vincenz, who was recently released from custody, has denied enriching himself and said he will fight the charges.

Raiffeisen forcefully denied that Switzerland's financial regulator, which is conducting an enforcement probe against the lender itself, prompted Gisel into resigning: «His integrity is beyond doubt,» the bank said, adding that a search to replace him has begun immediately.

The lender is paying dearly for a reprieve from headlines: Gisel's exit comes amid a power vacuum at the top of Raiffeisen. Interim Chairman Pascal Gantenbein has also been heavily criticized, and observers believe he may be replaced in November elections.

(More to follow)