EconomyMarkets

Credit Suisse had more than $20 billion exposure to Archegos investments

2/2
© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at a branch office in Zurich

2/2

(Reuters) – Credit Suisse (SIX:) Group had more than $20 billion of exposure to investments related to Archegos Capital Management and struggled to monitor them before the fund had to liquidate many large positions, the Wall Street Journal reported.

Parts of the bank had not fully implemented systems to keep pace with Archegos’ fast growth when Archegos bets on a collection of stocks swelled leading up to its March collapse, the report said, citing unidentified people familiar with the matter.

Chief Executive Thomas Gottstein and Lara Warner, the bank’s recently departed chief risk officer, became aware of the Archegos exposure in the days leading up to the forced liquidation of the fund, the report said. Neither Gottstein nor Warner had been aware of the fund as a major client before, it said.

Credit Suisse declined to comment on the WSJ report.

Switzerland’s second-biggest bank has been reeling from its exposure to the collapse first of British fund Greensill Capital and then U.S. investment fund Archegos within the course of one month.

Huge losses at Archegos last month prompted Credit Suisse to replace its heads of investment banking and of compliance and risk after it said it would book a $4.7 billion first-quarter charge from exposure to the stricken firm.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button