(Bloomberg) Credit Suisse Group AG reported a second-straight quarterly loss, as the lender struggles with a growing burden of legacy litigation costs that continue to batter its reputation.
The Zurich-based bank had a net loss of 273 million Swiss francs ($284 million), more than the 114.
Credit Suisse to Cut Hedge Fund Lending by Third After Archegos
This content was published on April 22, 2021 - 09:08
April 22, 2021 - 09:08
(Bloomberg) Credit Suisse Group AG is planning to slash lending to hedge funds by a third after the Archegos Capital blowup cost the bank $5.5 billion and forced it to tap investors for additional capital.
The Swiss lender on Thursday said it’s conducting a review with a goal of “resizing and derisking prime brokerage and prime financing businesses,” confirming a Bloomberg News report two weeks ago. It plans to focus the business on clients that have relationships with other parts of the firm and will reduce lending to hedge funds by some $35 billion, Chief Financial Officer David Mathers said in an interview.
Credit Suisse faces lawsuit from pension fund over Greensill, Archegos issues
Bloomberg
St. Clair Shores (Mich.) Police and Fire Retirement System filed a lawsuit against Credit Suisse Group, accusing the firm of misleading investors and allowing high-risk clients including Greensill Capital and Archegos Capital Management to take on excessive leverage.
In a securities class action filed April 16 in U.S. District Court for the Southern District of New York, the pension fund said Credit Suisse along with CEO Thomas Gottstein, former Chief Risk and Compliance Officer Lara Warner and Chief Financial Officer David Mathers issued materially false and misleading statements regarding the company s business metrics and financial prospects.
Credit Suisse is looking to boost its wealth management business by building up its China onshore presence and expanding elsewhere in the Asia-Pacific region, Chief Financial Officer David Mathers told Reuters in an interview.