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Credit Suisse's Prime Unit Risk Chief Had Been Archegos Salesman


Credit Suisse’s Prime Unit Risk Chief Had Been Archegos Salesman
This content was published on April 21, 2021 - 15:06
April 21, 2021 - 15:06
(Bloomberg) Wall Street banks have long relied on a familiar system to limit the dangers of trading with big clients: assign sales staff to win deals, and risk controllers to keep them in check even if it sacrifices some profit.At Credit Suisse Group AG, executives had given the point salesman to Archegos Capital Management on its swaps desk the new responsibility of instead overseeing risk-taking in the broader prime-brokerage unit, according to people with knowledge of the matter. This year, Archegos’s swap bets spectacularly collapsed, saddling the bank with a $4.7 billion writedown, and setting it up as the biggest loser to emerge from the debacle at Bill Hwang’s family office. ....

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Hedge Fund Shorts Credit Suisse on Frozen Greensill Funds


Hedge Fund Shorts Credit Suisse on Frozen Greensill Funds
This content was published on March 11, 2021 - 02:58
March 11, 2021 - 02:58
(Bloomberg) An Australian hedge fund is betting against Credit Suisse Group AG, expecting the Swiss lender may end up having to compensate clients for losses tied to billions of dollars invested in funds it ran with embattled financier Lex Greensill.
John Hempton, the co-founder and chief investment officer of Bronte Capital Management Pty, said in an interview Tuesday that he’d placed a “reasonable-sized short” last week, mainly against Credit Suisse. Known for bets against Wirecard AG and Valeant Pharmaceuticals International Inc., Hempton is also wagering on declines in Japanese insurance giant Tokio Marine Holdings Inc. and Insurance Australia Group Ltd. the two firms that had provided default cover for loans made by Greensill’s eponymous company. ....

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