Credit Suisse considers some changes in management due to threat of "Billions of dollars" loss
Credit Suisse thought about changes in top management after a series of mistakes that could cost the bank "billions of dollars", learned Bloomberg. The risk director and head of investment banking may lose their posts, according to the agency's source
According to them, the director of risk management Lara Warner may lose her post. The interlocutors of the agency noted that the bank will inform investors about the consequences of the collapse of the family office of Archegos Capital for the bank and how the situation will affect the top management of the company next week.
Two sources told Bloomberg that management's "scrutiny" is also on Brian Chin, chief investment officer at Credit Suisse. The bank also intends to review its brokerage business, which is also run by Chin, they said.
The bank's chief executive officer, Thomas Gottstein, will retain his position, according to Bloomberg sources. A Credit Suisse spokesman declined to comment.
2021 started off well for the bank, with its pretax income at its best in 10 years. However, in March, Credit Suisse suffered two blows at once. Earlier this month, the financial company Greensill Capital, which was lent by Credit Suisse, filed for bankruptcy. Because of this default, the bank was forced to freeze $ 10 billion, and Greensill Capital owed him $ 140 million.