{"id":220161,"date":"2021-04-06T15:46:02","date_gmt":"2021-04-06T12:46:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/credit-suisse-reveals-4-7b-hit-from-archegos-chaos\/"},"modified":"2021-04-06T15:46:02","modified_gmt":"2021-04-06T12:46:02","slug":"credit-suisse-reveals-4-7b-hit-from-archegos-chaos","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/credit-suisse-reveals-4-7b-hit-from-archegos-chaos\/","title":{"rendered":"#Credit Suisse reveals $4.7B hit from Archegos chaos"},"content":{"rendered":"

“#Credit Suisse reveals $4.7B hit from Archegos chaos<\/strong>”<\/p>\n

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Archegos Capital Management\u2019s massive blowup cost Credit Suisse $4.7 billion, the Swiss bank revealed Tuesday as it pushed out two top executives in the scandal\u2019s wake.<\/p>\n

Credit Suisse said it expects to post a roughly $959 million loss for the first quarter following the giant margin call that forced Archegos \u2014 the family investment office run by hedge-fund veteran Bill Hwang \u2014\u00a0to reportedly sell more than $20 billion worth of stock.<\/p>\n

That loss includes a nearly $4.7 billion charge the bank expects to take \u201cin respect of the failure by a US-based hedge fund to meet its margin commitments,\u201d Credit Suisse said<\/a> without identifying Archegos by name.<\/p>\n

The Zurich-based giant said Brian Chin, the CEO of its investment bank, and Lara Warner, its chief risk and compliance officer, would step down Tuesday while its board of directors investigates the Archegos mess.<\/p>\n

\u201cThe significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,\u201d Credit Suisse CEO Thomas Gottstein said in a statement. \u201cSerious lessons will be learned.\u201d<\/p>\n

\"Lara
Lara Warner was one of two top executives at Credit Suisse to step down after the Archegos mess. <\/figcaption>
REUTERS<\/span><\/figcaption><\/figure>\n

Credit Suisse was reportedly hit the hardest when Archegos\u2019 debt-heavy trading bets went south, forcing banks to whom the firm owed money to sell massive amounts of shares when it couldn\u2019t meet their demands for collateral.<\/p>\n

While some of Archegos\u2019 trading partners \u2014 such as Goldman Sachs, Deutsche Bank and Wells Fargo \u2014 were able to avoid large losses by selling the shares quickly, Credit Suisse\u2019s efforts to unload the firm\u2019s holdings stretched into this week, according to reports.<\/p>\n

The bank dumped $2.3 billion worth of Archegos-linked shares in ViacomCBS, fashion retailer Farfetch and Chinese e-commerce firm Vipshop on Monday, Bloomberg News reported<\/a>.<\/p>\n

The Archegos disaster will \u201cnegate the very strong performance\u201d that Credit Suisse\u2019s investment banking businesses otherwise posted for the first three months of the year as well as the increased profits across the bank\u2019s three wealth management businesses, it said in a Tuesday trading update.<\/p>\n

\"Credit
Credit Suisse CEO Thomas Gottstein said \u201cserious lessons will be learned\u201d from the incident.<\/figcaption>
REUTERS<\/span><\/figcaption><\/figure>\n

Credit Suisse is also grapp<\/a>ling with a separate scandal over its ties to Greensill Capital, the British financial-services firm that collapsed last month. The bank\u2019s losses from the Greensill and Archegos messes could total $7.5 billion, JPMorgan Chase analysts estimate<\/a>.<\/p>\n

Japanese bank Nomura warned shareholders last week that it could take a hit from $2 billion it was owed by an American client, which was reportedly identified as Archegos.<\/p>\n

\"Credit
Credit Suisse was still unloading Archegos-linked shares into this week.<\/figcaption>
REUTERS<\/span><\/figcaption><\/figure>\n

Credit Suisse\u2019s US-listed shares were flat at $10.87 in premarket trading as of 7:27 a.m. Tuesday.<\/p>\n

With Post wires<\/em>\n <\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Credit Suisse reveals $4.7B hit from Archegos chaos” Archegos Capital Management\u2019s massive blowup cost Credit Suisse $4.7 billion, the Swiss bank revealed Tuesday as it pushed out two top executives in the scandal\u2019s wake. Credit Suisse said it expects to post a roughly $959 million loss for the first quarter following the giant margin call…<\/p>\n","protected":false},"author":1,"featured_media":220162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/04\/credit-suisse-archegos-0.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[100971,72357],"class_list":["post-220161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-4-6-21","tag-credit-suisse"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/220161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=220161"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/220161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/220162"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=220161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=220161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=220161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}