Rolling coverage of the latest economic and financial news as Credit Suisse revealed a £3.4bn hit from the Archegos fallout
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Credit Suisse has kicked off the morning with a warning it will take a 4.4 billion Swiss franc hit (£3.4bn) over the Archegos Capital fallout. It comes after the US hedge fund was forced to liquidate billions of dollars worth of positions after being hit by margin calls just over a week ago.
Following the significant US-based hedge fund matter, Brian Chin, CEO of the Investment Bank is stepping down from his role on the executive board, effective April 30, 2021.
Lara Warner, Chief Risk and Compliance Officer, is stepping down from her role on the executive board, effective April 6. Both of them will leave the bank.
The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable. In combination with the recent issues around the supply chain finance funds, I recognise that these cases have caused significant concern amongst all our stakeholders.
Together with the board of directors, we are fully committed to addressing these situations. Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.