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NEW YORK – Credit Suisse will announce in an investor update on Tuesday about the departure of two senior executives and the amount he expects to lose due to his exposure to family office Archegos Capital, sources familiar with the matter said.
The Swiss bank will say that the chief risk officer Lara Warner and Brian Chin, CEO of its investment bank, will leave the bank, the sources said on Monday.
CREDIT SUISE HIT WITH S&P PROVISIONS CUT ON ARCHEGO TIRES
The non-payment of the calls by Archegos, a family office run by Bill Hwang, a former Tiger manager, has allowed a number of banks to quickly wind up billions of dollars from its leverage operations last month.
Credit Suisse withdrew its positions on Monday, the sources said.
Credit Suisse will announce in an investor update on Tuesday the departure of two senior executives and how much it expects to lose through its exposure to family firm Archegos Capital. (Getty Images)
The sources say the losses could amount to $ 5 billion, a figure the bank does not want to comment on.
The bank has already investigated its relationship with British finance firm Greensill, which collapsed into insolvency last month.
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The combined hit of both relationships could reach $ 7.5 billion, JPMorgan said Monday.
The bank is expected to say Warner and Chin will pay the price for the failures by leaving, the sources said. CEO Thomas Gottstein will remain in the post.