Credit Suisse reports a loss as regulators open an investigation.
Thomas Gottstein, the chief executive of Credit Suisse, described the loss as “unacceptable.” If not for the collapse of Archegos, the bank said it would have made a pretax profit of 3.6 billion francs.Credit.Ennio Leanza/Keystone, via Associated Press
April 22, 2021, 4:28 a.m. ET
Credit Suisse said on Thursday that it suffered a loss in the first quarter stemming from loans it made to the collapsed investment fund Archegos Capital Management, a debacle that has prompted Switzerland’s financial regulator to investigate whether the bank was doing a poor job monitoring the riskiness of its investments.
Swiss regulator opens enforcement proceedings against Credit Suisse over Archegos
The Swiss Financial Market Supervisory Authority (FINMA) said Thursday that it has “opened enforcement proceedings” against Credit Suisse , in connection with the bank’s “significant losses” linked to U.S. hedge fund Archegos Capital Management. In a statement, FINMA said it will “investigate in particular possible shortcomings in risk management,” appoint a third-party agent to investigate and continue to exchange information U.K. and U.S. authorities. FINMA said it has also opened proceedings against the bank over losses linked to collapsed supply-chain finance firm Greensill Capital. FINMA said in recent weeks it has ordered the bank to carry out various short-term measures, such as “organisational and risk-reducing measures and capital surcharges as well as reductions in or suspensions of variable remuneration components.” The bank on Thursday reported its second straight quarterl
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Swiss Probe Credit Suisse Over $4.7B Archegos Loss
Law360, London (April 22, 2021, 11:54 AM BST) Switzerland s financial watchdog said on Thursday that it has launched enforcement proceedings against Credit Suisse after the investment bank reported $4.7 billion in losses from its exposure to U.S. hedge fund Archegos Capital Management, which collapsed in March.
The Swiss watchdog said it will probe potential lapses in risk management at Credit Suisse, which could have led to the hit it took from Archegos. (iStock) The Swiss Financial Market Supervisory Authority said it will investigate possible shortcomings in the risk management at Credit Suisse Group AG, which could have led to the hit it took from Archegos, a so-called family office, which.