Provided by
Dow Jones
By Margot Patrick
Credit Suisse Group AG said it would issue new shares after losses from Archegos Capital Management wiped out a strong first quarter, highlighting the damage caused by the collapse of the investment firm.
On Thursday, the bank said it placed notes that convert to stock in six months to counter damage to its capital position from the loss and new charges imposed by the Swiss financial regulator. The offering will be based on the bank's share price in the coming days and could raise close to $2 billion in fresh capital.
It said it had only a small remaining exposure to Archegos as of Wednesday after selling 97% of its related positions, but lost another $655 million from them in the second quarter, adding to a $4.7 billion charge in the first quarter.