Credit Suisse Cuts Dividends After Archegos Scandal Hit; executives resign


A Swiss flag flies over a Credit Suisse sign in Bern, Switzerland

FABRICE COFFRINI | AFP | fake images

Credit Suisse announced several senior staff departures on Tuesday and proposed a cut to its dividend as it weighs the large losses of the Archegos Capital saga.

“Particularly after the important issue of US-based hedge funds, the Board of Directors is modifying its proposal on dividend distribution and withdrawing its proposals on variable compensation from the Executive Board,” the Swiss lender said in a business update. .

Investment Bank Chief Executive Officer Brian Chin and Chief Risk and Compliance Officer Lara Warner will be stepping down effective immediately, the bank said.

Credit Suisse last week revealed that it expected big losses from the collapse of US hedge fund Archegos Capital. The bank was forced to divest a significant number of shares to sever its ties to the troubled family office, and now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($ 960.4 million). .

“This includes a CHF 4.4 billion charge in respect of a failure by a US-based hedge fund to meet its margin commitments, as we announced on March 29, 2021,” added Credit Suisse .

This is a story in development and will be updated shortly.

.

Source link