The hits keep coming for investment banking giant Credit Suisse.
The firm announced Tuesday that it expects to take a CHF 4.4 billion (USD $4.7 billion) writedown following losses related to family office Archegos Capital Management’s failure to meet its margin requirements.
Executives are stepping down, and the firm has launched two investigations: one into Archegos, and another into Credit Suisse’s purchase of Greensill Capital’s supply chain debt. Thomas Gottstein, chief executive officer of the firm, called the losses tied to Archegos “unacceptable.”
In 2020, the firm faced its fair share of challenges too. In November, Credit Suisse told investors that it was taking a $450 million impairment on its stake in hedge fund York Capital Management, which announced it was winding down some of its businesses after a strategic review. And two of its clients Luckin Coffee and Wirecard AG spent much of the year embroiled in scandal.
Credit Suisse to write down $4 7bn after Archegos implosion
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Credit Suisse compliance chief steps down in Archegos collapse aftermath
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Credit Suisse in a $4.7 Billion Bind Thanks to Hwang’s Leveraged Bets Even the world’s biggest banks have difficulty keeping track of risks involved with financial innovations like CFDs.
Last updated on April 06, 2021
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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Fonds Greensill et Archegos – Credit Suisse fait le ménage après les récentes affaires
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