A Credit Suisse logo on 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 increased pressure on the bank.
The bank said the loss reflected a “significant charge on the issue of hedge funds based in the United States in 1Q21, offsetting positive performance in asset management and investment banking.”
The Swiss lender warned of serious losses earlier this month following a scandal involving Archegos Capital, a hedge fund based in the United States, which collapsed after taking too many risks. Credit Suisse said it achieved a success of 4.4 billion Swiss francs as a result.
In addition, investment bank CEO Brian Chin and risk and compliance manager Lara Warner resigned. The executive council decided to waive the bonuses for 2020 and also cut the proposed dividend.
According to the Wall Street Journal, US and Swiss regulators have asked Credit Suisse for more information on the collapse of Archegos.
In March, Credit Suisse also adjusted its asset management business and suspended bonuses following the collapse of Greensill Capital, a British supply chain financing company.
This is news in development and will be updated soon.