A Credit Suisse logo in the window of a bank branch of Credit Suisse Group AG in Zurich, Switzerland.
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LONDON – Credit Suisse reported a net loss of 252 million Swiss francs ($ 295 million) on Thursday at a time of increasing pressure on the bank.
The bank said the loss reflected a “significant burden related to the US hedge fund issue in 1Q21, offsetting the positive performance of asset management and investment banking.”
The Swiss lender warned of heavy losses earlier this month following a scandal involving Archegos Capital, a US hedge fund, who collapsed after taking too much risk. Credit Suisse said it took a hit of 4.4 billion Swiss francs because of this.
In addition, Brian Chin, CEO of the investment bank, and Chief Risk and Compliance Officer, Lara Warner, both resigned. The board of directors has decided to waive bonuses for the year 2020 and also to reduce the proposed dividend.
According to the Wall Street Journal, regulators in the US and Switzerland have asked Credit Suisse for more information about Archegos’ collapse.
In March, Credit Suisse also adjusted its asset management business and suspended bonuses following the collapse of Greensill Capital, a UK supply chain finance company.
This is a news item in development and will be updated shortly.