Credit Suisse Gave Archegos Big Leverage for Collateral
This content was published on May 3, 2021 - 14:11
May 3, 2021 - 14:11
(Bloomberg) Credit Suisse Group AG’s business with Archegos Capital Management enabled the family office to undertake highly-leveraged stock bets with only minimal collateral posted, a strategy that exposed the lender to losses far exceeding its peers when the firm collapsed.
Credit Suisse lent the family office of Bill Hwang funds allowing bets with leverage of up to ten times, and only asked for collateral worth 10% of the sums borrowed, according to a person familiar with the business.
The leverage offered by the Swiss bank was in some cases double what other brokers gave Hwang, helping to push the loss to some $5.5 billion after the fund imploded in March. That compares with a $2.9 billion hit to Nomura Holdings Inc and lesser sums or no loss at all for lenders including Deutsche Bank AG that offered Hwang prime brokerage services.
Apr 30 2021, 12:17 PM
April 29 2021, 7:58 PM
April 30 2021, 12:17 PM
(Bloomberg) Credit Suisse Group AG risk committee head Andreas Gottschling is stepping down from his role after prominent investors indicated theyâll vote to oust him following the $5.5 billion hit from the meltdown of Archegos Capital Management.
(Bloomberg) Credit Suisse Group AG risk committee head Andreas Gottschling is stepping down from his role after prominent investors indicated theyâll vote to oust him following the $5.5 billion hit from the meltdown of Archegos Capital Management.
Gottschling is standing down ahead of the bankâs annual general meeting on Friday, according to a statement from the company. Shareholder advisory firms including Glass Lewis had urged the bankâs investors to vote against re-electing him for another yearly term.
Credit Suisse CEO Gottstein Vows to Restore Calm After Archegos
This content was published on April 30, 2021 - 08:56
April 30, 2021 - 08:56
(Bloomberg) Credit Suisse Group AG Chief Executive Officer Thomas Gottstein pledged to restore calm at the Swiss bank after the Archegos Capital Management scandal caused a $5.5 billion hit and further damaged its reputation.
Speaking at the virtual annual general meeting on Friday, Gottstein said that the recent developments had “left their mark” on him, and that with the new chairman and board, he would seek “to steer Credit Suisse back into calmer waters.”
Gottstein is battling to rescue his short tenure as chief executive officer after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital scandal, when it was
(Bloomberg) Credit Suisse Group AG Chairman Antonio Horta-Osorio said he plans a thorough assessment of the bank’s “strategic options” after the twin hits from the collapse of Archegos Capital Management and Greensill Capital eroded confidence. While he backed Chief Executive Officer Thomas Gottstein at the bank’s annual general meeting, the new chairman left little doubt about his appetite for change. The recent missteps at the Swiss lender, he said, went beyond any crises he had lived through over three-and-a-half decades working at banks. “We will take the time required for an in-depth assessment of the bank’s strategic options,” said Horta-Osorio, who succeeded Urs Rohner on Friday. “Then we will decide on a course of action and closely oversee the execution.” The comments are the clearest indication yet that the former head of Lloyds Banking Group Plc is planning to take a hands-on approach in his new role. Analysts and executives have suggested his options inc
Credit Suisseâs New Chairman Signals Possible Shakeup After Woes
This content was published on April 30, 2021 - 12:53
April 30, 2021 - 12:53
(Bloomberg) Credit Suisse Group AG Chairman Antonio Horta-Osorio said he plans a thorough assessment of the bankâs âstrategic optionsâ after the twin hits from the collapse of Archegos Capital Management and Greensill Capital eroded confidence.
While he backed Chief Executive Officer Thomas Gottstein at the bankâs annual general meeting, the new chairman left little doubt about his appetite for change. The recent missteps at the Swiss lender, he said, went beyond any crises he had lived through over three-and-a-half decades working at banks.