Wednesday, October 8, 2025

Latest

Archegos Collapse: Credit Suisse Takes $4.7 Billion Loss

The implosion of family investment firm hedge fund Archegos Capital Management last month has cost embattled Credit Suisse almost $4.7 billion in losses, and the termination of several of the bank’s top executives.

The Swiss bank was among the hardest hit from the collapse of Bill Hwang’s Archegos, after suffering a significant loss in its unit that services hedge funds. That loss has now been confirmed to be upwards of $4.7 billion, as Credit Suisse announced it will likely report a pretax loss of $959 million in the first quarter of 2021 – a substantial loss for a company that posted net income of $2.9 billion for all of 2020.

In addition, Credit Suisse also revealed that it will terminating its top investment banker Brian Chin, as well as its chief risk officer Lara Warner. The remaining members of the bank’s executive board will not receive bonuses for 2020, meanwhile board chairman Urs Rohner will have to forego $1.6 million in compensation.

In order to increase capital following the serious Archegos financial blow, Credit Suisse also announced that it will discontinue its share buyback program and pay a decreased dividend via a combination of capital and retained earnings. Following the collapse of Hwang’s hedge fund, Credit Suisse shares have fallen by almost a quarter since the beginning of March, but regained some of the losses as of recent.


Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Is Credit Suisse Next? Swiss National Bank Ready To Provide Liquidity “If Necessary”

While asserting calm that Credit Suisse (NYSE: CS) “meets the capital and liquidity requirements imposed...

Wednesday, March 15, 2023, 04:06:43 PM

Credit Suisse Ceases Custodian Services Related to US Cannabis Stocks

Credit Suisse has been informing its customers over the past several months that it will...

Friday, May 7, 2021, 04:00:00 PM

Battery Talks In Canada: Supply Chain With Japan, First Volkswagen Plant

Japan and Canada are discussing collaborating to develop solid supply chains for battery metals, according...

Thursday, March 16, 2023, 08:01:05 AM

Credit Suisse, HSBC, Others Fined Nearly $400M Over Foreign Currency Market Collusion

European Union regulators have issued fines for four major banks, after an investigation revealed they...

Friday, December 3, 2021, 10:21:00 AM

Prosecutors Seek 21-Year Prison Term for Archegos Founder Hwang

US prosecutors have requested a 21-year prison sentence for Archegos Capital Management founder Bill Hwang,...

Monday, November 18, 2024, 07:07:51 AM