Credit Suisse, one of the world’s largest investment banks, expects to lose £3.4bn due to the collapse of Archegos Capital Management.
The bank now expects to report a pre-tax loss of 900 million Swiss francs in the first three months of the year and has been forced to dump over $2 billion worth of stock to end exposure to the investor.
Credit Suisse also announced the departure of Lara Warner, chief risk officer, and Brian Chin, investment banking head, and said it was halting its share buyback programme and slashing its 2020 dividend.
Thomas Gottstein, chief executive, said: “The significant loss in our prime services business relating to the failure of a US-based hedge fund is unacceptable. Serious lessons will be learnt.”
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