Credit Suisse axes bosses and bonuses amid Archegos losses
Tuesday - 06/04/2021 08:24
Credit Suisse took drastic action on Tuesday, replacing two key executives and cutting bonuses amid the fallout from two major business relationships.
Its chief risk officer, Lara Warner and its investment banking chief, Brian Chin will both leave the bank in April.
Two businesses linked to the Swiss banking giant, Greensill Capital and hedge fund Archegos imploded in recent weeks with major losses.
Greensill was the key financial backer of Liberty Steel owner, GFG Alliance.
Greensill Capital, filed for insolvency earlier this month. There are concerns about the future of Liberty Steel which directly employs 3,000 people in the UK. An additional 2,000 people work for GFG Alliance in the UK.
Credit Suisse said it expects to make a $960m (£690m) loss for the first quarter. It had planned to ask shareholders to vote on both short and long-term bonus awards for executives, but it has now cancelled these proposals and it is cutting its proposed dividend payout to shareholders.
It also warned of a $4.7bn loss from Archegos' implosion alone.
It said it had yet to calculate the cost of its involvement with Greensill Capital.
Archegos is run by controversial former hedge fund manager, Bill Hwang.The Swiss bank was one of several lenders that acted as prime broker to Mr Hwang.