Credit Suisse executives out after $4.7 billion hit from Archegos collapse
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The Swiss bank said Tuesday that it was likely to report a pretax loss of 900 million Swiss francs ($959 million) for the first quarter of this year after taking a charge of 4.4 billion Swiss francs ($4.7 billion) in respect of the failure of Archegos.
Thomas Gottstein, who became CEO last year, will remain in his job.
“The significant loss … relating to the failure of a US-based hedge fund is unacceptable,” Gottstein said in a statement. “Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.”
Credit Suisse also said it would slash its dividend and suspend share buybacks.
Credit Suisse said in a statement that its involvement with both Archegos and Greensill “require substantial further review and scrutiny.”
“The board of directors has launched investigations into both of these matters which will not only focus on the direct issues arising from each of them, but also reflect on the broader consequences and lessons learned,” it added.
— This is a developing story and will be updated
2021-04-06 04:41:51
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