The firm will take a 4.4 billion franc ($4.7 billion) writedown tied to its Archegos exposure, forcing it to cut its dividend and suspend share buybacks. The company’s investment bank head and chief risk officer were among more than half a dozen executives replaced over the worst trading debacle in over a decade.
While Credit Suisse was far from the only bank that allowed Bill Hwang’s family office to lever up large positions in a few stocks, others managed to unwind their exposure quickly with minimal damage. That raised questions over Chief Executive Officer Thomas Gottstein’s handle on the firm’s risk just weeks after the lender was caught up in another implosion of a little-known financial player.
Credit Suisse Executives to Depart After Archegos Losses
This content was published on April 6, 2021 - 02:11
April 6, 2021 - 02:11
(Bloomberg) Credit Suisse Group AG is shaking up its executive ranks after the Zurich-based lender was hit hard by the collapse of Archegos Capital Management.
Investment bank chief Brian Chin is set to leave in an exit that may be announced as soon as Tuesday, according to people familiar with the matter, who asked not to be identified because the move hasn’t been made public. Chief Risk Officer Lara Warner is also departing, along with a number of business heads, although Chief Executive Officer Thomas Gottstein will be spared.
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ZURICH (dpa-AFX) - Credit Suisse sold about $2.3 billion worth of stocks tied to the Archegos Capital. The Zurich-based lender will change its executives after the bank was affected by the collapse of Archegos Capital Management, Bloomberg reported citing people familiar with the matter.
Archegos Capital Management is a family office capital management firm run by Bill Hwang.
Credit Suisse s investment-bank chief Brian Chin is set to leave, with his exit announced as soon as Tuesday, the report said.
The report also said Zurich-based lender is discussing replacing Chief Risk Officer Lara Warner while sparing Chief Executive Officer Thomas Gottstein as they tally Archegos-related losses.
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