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Archegos Fallout: Credit Suisse Cuts Dividend, Slashes Buybacks; Headed For 2nd Straight Quarterly Loss


by Tyler Durden
Tuesday, Apr 06, 2021 - 08:02 AM
Embattled Swiss bank Credit Suisse finally dumped its last remaining blocks of stocks tied to the implosion of hedge fund (excuse us, family office ) Archegos Capital Management on Tuesday following the close of markets in New York. As investors waited to learn more, the bank told the financial press that this would be the last sale of the so-called Archegos stocks.
Hours later, a flurry of anonymously-sourced reports hit the tape claiming that the Swiss bank would be firing its top risk and compliance officer, along with the head of its investment bank (a white woman and asian man, respectively), and that its losses from the Archegos fiasco would total $5 billion, $1 billion more than initial estimates. ....

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Credit Suisse Group takes $4.7-billion Archegos hit, cuts payouts


Credit Suisse Group AG will take a 4.4 billion franc ($4.7 billion) writedown tied to the implosion of Archegos Capital Management and replace more than half a dozen executives in response to the firm’s worst trading debacle in over a decade. The charge will result in a pretax loss of about 900 million francs for the first quarter, the bank said in a statement Tuesday, putting it on track for its second straight net loss. Credit Suisse scrapped bonu­ses for top executives, cut its dividend and suspended share buybacks to protect its capital. Investment bank head Brian Chin and Chief Risk Officer Lara Warner are leaving. Chief Executive Officer Thomas Gottstein vowed he will draw “serious lessons” from the Archegos loss and the collapse of Greensill Capital last month as they leave him with little room for further missteps. ....

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