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by Tyler Durden Saturday, May 08, 2021 - 03:31 PM After firing a raft of senior employees including its head of risk, Lara Warner, Credit Suisse has been struggling to move past a series of major risk-management failures that together could cost the bank $10 billion, or more, though the final tally of losses from the Archegos blowup isn t yet known as the bank weighs whether it should cover some client losses associated with the low risk trade-finance funds that collapsed earlier this year. Following reports that the bank took in only $17.5MM in fees from servicing the trade that led to the collapse of highly-levered Archegos Capital, the hedge fund that used highly leveraged $20 billion to more than $100 billion via a string of bets with various prime brokers to amplify its bets on ViacomCBS and a host of other tech and media stocks (many Chinese ADRs) while skirting reporting requirements, it has become apparent the bank s leadership in that division is sorely lack ....
Credit Suisse Lures Back Prime Broker Head to Clean Up Archegos This content was published on May 7, 2021 - 17:25 May 7, 2021 - 17:25 (Bloomberg) Three years after he left in a leadership shakeup, former Credit Suisse Group AG prime broker head Indrajit Bardhan is returning to clean up his old unit in the wake of its multibillion-dollar losses from botched dealings with Archegos Capital Management. The Swiss bank hired Bardhan as a consultant, according to people with knowledge of the arrangement, who asked not to be identified because the matter is private. He was among a number of high-profile executives to exit in 2018. He relinquished his role as global head of prime services to Paul Galietto, who later rose to head of equities and then left last month after the bank posted $5.5 billion in losses tied to Archegos. ....
Credit Suisse CEO Gottstein Vows to Restore Calm After Archegos This content was published on April 30, 2021 - 08:56 April 30, 2021 - 08:56 (Bloomberg) Credit Suisse Group AG Chief Executive Officer Thomas Gottstein pledged to restore calm at the Swiss bank after the Archegos Capital Management scandal caused a $5.5 billion hit and further damaged its reputation. Speaking at the virtual annual general meeting on Friday, Gottstein said that the recent developments had “left their mark” on him, and that with the new chairman and board, he would seek “to steer Credit Suisse back into calmer waters.” Gottstein is battling to rescue his short tenure as chief executive officer after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital sca ....
Credit Suisse races to contain Archegos hit with $2.6b capital raising smh.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from smh.com.au Daily Mail and Mail on Sunday newspapers.
Credit Suisse Surprises With $2 Billion Capital Raise, Still Has Exposure To Archegos In Three Distinct Positions by Tyler Durden Thursday, Apr 22, 2021 - 09:25 AM The second largest Swiss bank has been a veritable volcano of bad news in the past month, and today was no different: in the bank s earnings call, Credit Suisse Group announced it was raising $2 billion from investors in the form of convertible notes, while also suspending its share buyback and cut the dividend - news which sent the stock tumbling as much as 7%. . while also warning of even more pain from the Archegos collapse and cutting the hedge fund unit at the center of that particular fiasco as embattled CEO Thomas Gottstein seeks to recover from one of the most turbulent periods in the bank’s recent history. ....