Stay updated with breaking news from கீயன் நாம். Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Credit Suisse facing ‘billions of dollars’ of claims from Greensill class-action lawsuit Threat of legal action caps nightmarish start to 2021 for investment bank after twin implosions of Greensill and Archegos 17 April 2021 • 8:00pm Credit Suisse faces an American-style class action lawsuit over losses suffered by investors in its funds that backed the collapsed lender Greensill. US law firm Boies Schiller Flexner is this week holding its first group meeting with investors who have been burnt by the Greensill Capital saga to discuss how to pursue litigation, insiders said. Litigation funders eager to take a slice of any payouts have also approached lawyers about backing the case, which is likely to centre around mis-marketing claims and even mismanagement. ....
Matteo Colombo/Getty Images This is 5x the normal loss level for a collateralized daily mark-to-market business, JPMorgan added. It however cited three lessons the industry could take away from the implosion that has roiled the markets. Global banks are expected to lose up to $10 billion following the Archegos Capital Management meltdown, JPMorgan said Monday raising its estimate from an initial $2 billion-$5 billion with Credit Suisse Group and Nomura Holding hardest hit. One line of argument which could explain why the scale of losses suffered by [Credit Suisse] and Nomura was higher could be a higher level of leverage extended by these banks compared to [Goldman Sachs and Morgan Stanley], which seem to have suffered smaller losses if any, JPMorgan analysts led by Kian Abouhossein said in a research note Monday. ....
In an era of prosperity for investment banks, Credit Suisse Group AG is careening from one crisis to another and then another this time, with a $4.7 billion writedown tied to billionaire investor Bill Hwang’s trading blowout. The staggering hit the largest yet linked to market-shaking losses run up by Hwang’s Archegos Capital Management prompted sweeping management changes at the Swiss bank Tuesday and cast fresh doubt on its checkered record of managing risks. It caps a catalog of costly errors at Credit Suisse most recently the collapse of Greensill Capital in what was supposed to be the start of steadier era under Chief Executive Officer Thomas Gottstein. ....
The firm will take a 4.4 billion franc ($4.7 billion) writedown tied to its Archegos exposure, forcing it to cut its dividend and suspend share buybacks. The company’s investment bank head and chief risk officer were among more than half a dozen executives replaced over the worst trading debacle in over a decade. While Credit Suisse was far from the only bank that allowed Bill Hwang’s family office to lever up large positions in a few stocks, others managed to unwind their exposure quickly with minimal damage. That raised questions over Chief Executive Officer Thomas Gottstein’s handle on the firm’s risk just weeks after the lender was caught up in another implosion of a little-known financial player. ....
JPMorgan skewers the problem at Credit Suisse efinancialcareers.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from efinancialcareers.com Daily Mail and Mail on Sunday newspapers.