The Swiss flag flies over the Credit Suisse logo over Berne, Switzerland
Fabric Cofrini | AFP | Getty Images
Credit Suisse announced the departure of several senior staff on Tuesday and proposed to cut its dividend because it weighed Archegos Capital’s legendary huge losses.
UBS said in the transaction update: “Especially after a major incident in hedge funds in the United States, the board of directors is revising its proposal for dividend distribution and withdrawing its proposal for variable compensation for the executive committee.”
The bank said that investment bank chief executive Brian Chin (Brian Chin) and chief risk and compliance officer Lara Warner (Lara Warner) will resign immediately.
Last week, Credit Suisse (Credit Suisse) revealed that it expects significant losses after the collapse of the US hedge fund Archegos Capital. The bank was forced to sell a large amount of stock to cut ties with the troubled family office and now expects a pre-tax loss of approximately 900 million Swiss francs ($960.4 million) in the first quarter.
Credit Suisse added: “This includes an expense of 4.4 billion Swiss francs, which was caused by a US hedge fund’s failure to fulfill the margin commitments we announced on March 29, 2021.”
This is a developing story and will be updated soon.