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Credit Suisse execs out as bank takes $4.7 billion hit from hedge fund collapse

April 6, 2021. Summarized by summa-bot.

Compression ratio: 66.1%. 1 min read.

A Credit Suisse Group AG office building??as night falls in Muri, Bern, Switzerland, on Monday, Feb. 15, 2021. Credit Suisse is expecting to post a fourth-quarter loss when it reports earnings on Feb. 18, after setting aside $850 million for U.S. legal cases including MBIA and booking a $450 million impairment on a hedge fund investment. Photographer: Stefan Wermuth/Bloomberg

The collapse last month of US hedge fund Archegos Capital cost Credit Suisse nearly $4.7 billion and two of the bank's top executives their jobs.

London (CNN Business)The collapse last month of US hedge fund Archegos Capital cost Credit Suisse nearly $4. 7 billion and two of the bank's top executives their jobs.

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.

Credit Suisse (CS) also said that its top investment banker Brian Chin and chief risk officer Lara Warner would both be leaving the bank.

Credit Suisse and Japan's Nomura (NMR) were among the major banks exposed to losses.

Archegos is the second major stumble for Credit Suisse in recent weeks.

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