if you want to buy apple account, choose buyappleacc.com, buyappleacc.com is a best provider within bussiness for more than 3 years. choose us, you will never regret. we provied worldwide apple developer account for sale.
ZURICH -Credit Suisse said on Tuesday it will take a 4.4 billion Swiss franc ($4.7 billion) hit from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk division.
The scandal-hit bank now expects to post a loss for the first quarter of around 900 million Swiss francs. It is also suspending its share buyback plans and cutting its dividend by two thirds.
Switzerland's No. 2 bank, which has dumped over $2 billion worth of stock to end exposure to Archegos, said Chief Risk Officer Lara Warner and Brian Chin, the bank's investment banking head, were stepping down following the losses.
"The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable," Credit Suisse Chief Executive Thomas Gottstein said in a statement. "Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history."
The Archegos fallout is the second major scandal for Credit Suisse in just over a month after the collapse of Greensill Capital, with the bank's shares down by a quarter since March 1. Credit Suisse had marketed funds that had financed the operations of the British supply chain finance firm.
The bank's board has launched an investigation into the Archegos losses. It also has begun a probe into its $10 billion supply chain funds which invested in bonds issued by Greensill. Bonuses for executive board members have been scrapped and outgoing chairman Urs Rohner is to forgo his 1.5 million Swiss franc fee.
Credit Suisse shares were down 1.5% in early trade.
The bank said Christian Meissner would be appointed chief of the investment bank as of May 1, while Joachim Oechslin, who was the bank's chief risk officer until February 2019, would take on the risk head role again on an interim basis. Thomas Grotzer is to be interim global head of compliance.
"At least - in our opinion - personnel consequences have now been taken. The main damage, however, has been inflicted on shareholders, who have to make do with a lower dividend and a suspended share buyback," said Michael Kunz, an analyst at Zuercher Kantonalbank.
"In view of the bank's vulnerability to risk....it does not seem appropriate to us to recommend bets on the securities of CS Group."
Warner and Chin are paying the price for a year in which Credit Suisse's risk management protocols have come under harsh scrutiny. JPMorgan Chase & Co analysts estimate that combined losses from the Archegos and Greensill scandals could add up to $7.5 billion.
Archegos, a private investment vehicle of former hedge fund manager Sung Kook "Bill" Hwang, fell apart late last month when its debt-laden bets on stocks of certain media companies unravelled. Credit Suisse and other banks, which acted as Archegos' brokers, had to scramble to sell the shares they held as collateral and unwind the trades.