A Swiss flag flies over a sign of Credit Suisse in Bern, Switzerland
COFFRIN FABRIC | AFP | Getty Images
Credit Suisse on Tuesday announced several high-level staff members and proposed a reduction in its dividend because it weighs heavily on losses from the Archegos Capital saga.
“In particular, the Board of Directors amends its proposal on the distribution of dividends following the important US hedge fund issue and withdraws its proposals on variable remuneration from the Executive Council,” the Swiss borrower said in a trade update.
Investment Bank CEO Brian Chin and chief risk and compliance officer Lara Warner will step down from their positions with immediate effect, the bank said.
Last week, Credit Suisse revealed that it expects heavy losses following the collapse of the US hedge fund Archegos Capital. The bank was forced to pour a significant amount of stock to sever ties with the struggling office and now expects a pre-tax loss of approximately 900 million Swiss francs ($ 960.4 million) in the first quarter.
“This includes a cost of CHF 4.4 billion in respect of a US hedge fund’s failure to meet its margin obligations as we announced on March 29, 2021,” Credit Suisse added.
This is an evolving story and will be updated soon.