Credit score Suisse executives exited after $ 4.7 billion hit by Archegos collapse
The Swiss financial institution mentioned on Tuesday it was more likely to report a pre-tax lack of 900 million Swiss francs ($ 959 million) for the primary quarter of this 12 months after taking up 4.4 billion Swiss francs (4 , $ 7 billion) in respect of the Archegos chapter. .
“The massive loss … related to the failure of a US-based hedge fund is unacceptable,” CEO Thomas Gottstein mentioned in a press release. “Severe classes will likely be realized. Credit score Suisse stays an important establishment with a wealthy historical past.”
Credit score Suisse has additionally introduced that it’ll lower its dividend and droop share buybacks.
“We’d like transparency and rigorous oversight to ensure the subsequent hedge fund increase does not drag the financial system together with it,” Democratic Senator Elizabeth Warren mentioned in a press release final month.
One scandal after one other
The financial institution’s popularity was additionally broken by an accounting scandal at Luckin Espresso. Credit score Suisse acted as an underwriter when the corporate went public on the Nasdaq in 2019. The Chinese language firm was taken off the US inventory trade final 12 months after fraudulently inflating gross sales.
Credit score Suisse mentioned in a press release that its involvement with Archegos and Greensill “would require additional examination and investigation.”
“The board has launched surveys on these two subjects which is not going to solely deal with the direct points arising from every of them, but additionally replicate on the broader penalties and classes realized,” he added.