(Bloomberg) Credit Suisse Group AG slashed the amount of money set aside for employee bonuses by hundreds of millions of dollars and used the savings to limit the financial hit from the implosion of Archegos Capital Management. Cuts to accruals for staff compensation and other one-off items added about $600 million to underlying profit before tax for the first quarter, which is expected to be just over $3.7 billion, a person familiar with the matter said, asking for anonymity to discuss internal information. A spokesperson for Credit Suisse declined to comment on the numbers, which were reported earlier by the Financial Times. Bonuses are accrued every quarter on a pro-rata basis, so the bank could set aside more in the remainder of the year to make up for the cuts. Credit Suisse emerged as the big loser in global investment banks’ race to exit trading positions as Archegos collapsed, pushing it into a 900 million-franc ($975 million) pretax loss for the quarter and prompting a man
(Bloomberg) Credit Suisse Group AG slashed the amount of money set aside for employee bonuses by hundreds of millions of dollars and used the savings to limit the financial hit from the implosion of Archegos Capital Management. Cuts to accruals for staff compensation and other one-off items added about $600 million to underlying profit before tax for the first quarter, which is expected to be just over $3.7 billion, a person familiar with the matter said, asking for anonymity to discuss internal information. A spokesperson for Credit Suisse declined to comment on the numbers, which were reported earlier by the Financial Times. Bonuses are accrued every quarter on a pro-rata basis, so the bank could set aside more in the remainder of the year to make up for the cuts. Credit Suisse emerged as the big loser in global investment banks’ race to exit trading positions as Archegos collapsed, pushing it into a 900 million-franc ($975 million) pretax loss for the quarter and prompting a man
Credit Suisse Slashes Bonus Accruals After Archegos Hit
This content was published on April 13, 2021 - 13:34
April 13, 2021 - 13:34
(Bloomberg) Credit Suisse Group AG slashed the amount of money set aside for employee bonuses by hundreds of millions of dollars and used the savings to limit the financial hit from the implosion of Archegos Capital Management.
Cuts to accruals for staff compensation and other one-off items added about $600 million to underlying profit before tax for the first quarter, which is expected to be just over $3.7 billion, a person familiar with the matter said, asking for anonymity to discuss internal information.
A spokesperson for Credit Suisse declined to comment on the numbers, which were reported earlier by the Financial Times. Bonuses are accrued every quarter on a pro-rata basis, so the bank could set aside more in the remainder of the year to make up for the cuts.
Credit Suisse Tightens Hedge Fund Limits After Archegos Hit yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Credit Suisse Plans Hedge Fund Unit Overhaul After Archegos Hit
This content was published on April 9, 2021 - 11:16
April 9, 2021 - 11:16
(Bloomberg) Credit Suisse Group AG is planning a sweeping overhaul of the hedge fund business at the center of the Archegos Capital blow up, as the drama forces Wall Street banks to reconsider how they finance some of their most lucrative clients.
The Swiss bank is weighing significant cuts to its prime brokerage arm in coming months, people familiar with the plan said. The lender has already moved to tighten financing terms with some funds, and hopes changes to the unit can allow it to forgo major cuts to other parts of the investment bank, which just had a banner quarter, the people said, asking not to be identified as the matter is private.