Zurich, April 6, (dpa-AFX/GNA) – Credit Suisse said Tuesday that it expects to report a pre-tax loss of about 900 million Swiss francs (960 million dollars) in the first-quarter of 2021.
It includes a charge of 4.4 billion francs in respect of the failure by a US-based hedge fund to meet its margin commitments.
The Zurich-based lender also said that chief executive officer of its Investment Bank division, Brian Chin, will step down from his role on the executive board, effective April 30.
Lara Warner, chief risk and compliance officer, will step down from her role on the executive board, effective April 6.
The company has appointed Christian Meissner as chief executive officer of the Investment Bank and member of the executive board, effective on May 1. Joachim Oechslin is appointed ad interim chief risk officer and member of the executive board on an ad-interim basis, effective April 6.
Thomas Gottstein, CEO of Credit Suisse Group said: “The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable.”
Credit Suisse acknowledged that both the US hedge fund and the supply chain finance fund matters require substantial further review and scrutiny. It has launched investigations into both of the 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.
On March 29, Credit Suisse reportedly disclosed that it anticipated significant losses in connection with positions linked to Archegos Capital Management after Archegos failed to meet margin calls the prior week, forcing the liquidation of more than 20 billion dollars in holdings.
On March 26, Archegos defaulted on margin calls from several global investment banks, including Credit Suisse and Nomura Holdings, as well as Goldman Sachs and Morgan Stanley.
GNA