Top Executives Leave Credit Suisse Over US Stock Market Scandal
Several of Credit Suisse’s top executives are resigning due to the stock market scandal surrounding the American investment fund Archegos Capital Management, in which the Swiss bank is involved.
Archegos took significant financial risks on the stock exchange, resulting in heavy losses and Credit Suisse, among others, was an intermediary for those transactions.
Due to the scandal, Credit Suisse fears a financial blow of 4.7 billion dollars. Risk director Lara Warner and investment banking division head Brian Chin are now leaving Credit Suisse. Credit Suisse CEO Thomas Gottstein will stay on. Other high-ranking managers will also have to leave the field at Switzerland’s second bank because of the scandal, insiders say.
The problems at Credit Suisse by Archegos come on top of the malaise caused by the collapse of financing company Greensill Capital. Credit Suisse can also lose a lot of money due to the demise of Greensill. The affairs have raised questions about the Swiss bank’s risk policy.
Credit Suisse now expects to make a loss in the first quarter and wants to cut the dividend. CEO Gottstein acknowledges that the matters have caused great concern among shareholders and other stakeholders at Credit Suisse. Gottstein has been at the helm of Credit Suisse since early 2020.