Name: Credit Suisse overhauls executive board as it estimates Archegos fallout at $4.7 billion
Brand: reuters.com
SKU: reuters-com-2929
Availability: OnlineOnly

critic

Credit Suisse overhauls executive board as it estimates Archegos fallout at $4.7 billion

preview

By ZURICH (Reuters) - Credit Suisse on Tuesday said it was replacing senior managers, halting its share buyback programme and slashing its 2020 dividend as it grapples with the estimated 4.4 billion Swiss franc ($4.69 billion) fallout from its relationship with Archegos Capital Management LP.Chief Risk Officer Lara Warner and investment banking head Brian Chin will both leave the bank in April, Switzerland’s second largest lender said.The bank said it now expects to post a pre-tax loss of roughly 900 million francs for the first quarter, as its strong performance in the quarter was wiped out by the affair.“The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,” Chief Executive Thomas Gottstein said in a statement. “Serious lessons will be learned.”The bank will now propose a dividend of 0.10 francs per share, down from its earlier plan for a pay-out of 0.2926 francs.It scrapped proposals for executive bonuses for the year and outgoing Chairman Urs Rohner’s 1.5 million franc fee for the 2020-2021 period.Warner will be replaced with immediate effect by Joachim Oechslin as interim Chief Risk Officer and Thomas Grotzer as interim Global Head of Compliance, the bank said. Christian Meissner will become CEO of the Investment Bank when Chin steps down from his role on April 30.The changes mark the second and third changes to its executive board in the past month, after the bank in March overhauled its asset management business following a separate costly collapse of supply chain firm Greensill Capital.($1 = 0.9372 Swiss francs)Reporting by Brenna Hughes Neghaiwi, editing by John RevillOur Standards:

By ZURICH (Reuters) - Credit Suisse on Tuesday said it was replacing senior managers, halting its share buyback programme and slashing its 2020 dividend as it grapples with the estimated 4.4 billion Swiss franc ($4.69 billion) fallout from its relationship with Archegos Capital Management LP.Chief Risk Officer Lara Warner and investment banking head Brian Chin will both leave the bank in April, Switzerland’s second largest lender said.The bank said it now expects to post a pre-tax loss of roughly 900 million francs for the first quarter, as its strong performance in the quarter was wiped...

public

Brenna Hughes Neghaiwi

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Credit Suisse overhauls executive board as it estimates Archegos fallout at $4.7 billion

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS