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Credit Suisse CEO says 'serious lessons will be learnt' as firm takes $4.7b hit
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SME Times News Bureau | 07 Apr, 2021
Credit Suisse CEO Thomas Gottstein has said that
"serious lessons will be leart" as the global bank took a $4.7 billion
hit and fired two top executives after the collapse of the hedge fund,
Archegos.
Gottstein said: "The significant loss in our Prime
Services business relating to the failure of a US-based hedge fund is
unacceptable. In combination with the recent issues around the supply
chain finance funds, I recognise that these cases have caused
significant concern among all our stakeholders. Together with the Board
of Directors, we are fully committed to addressing these situations.
Serious lessons will be learned. Credit Suisse remains a formidable
institution with a rich history."
Credit Suisse has also announced an investigation into the matter.
"We
acknowledge that both the US hedge fund and the supply chain finance
fund matters require substantial further review and scrutiny. The Board
of Directors has launched investigations into both of these matters
which will not only focus on the direct issues arising from each of
them, but also reflect on the broader consequences and lessons learned,"
a statement said.
Credit Suisse has also undertaken senior
management changes within the Investment Bank division and within the
Risk and Compliance organisation.
It has also slashed dividends
and bonuses. Credit Suisse said that following the significant US-based
hedge fund matter, the Board of Directors is amending its proposal on
the distribution of dividends and withdrawing its proposals on variable
compensation of the Executive Board.
Brian Chin, CEO of the
Investment Bank, and Lara Warner, Chief Risk and Compliance Officer,
will step down from their roles, the bank said.
The Credit Suisse
losses are related to transactions with Archegos, a private investment
vehicle of former hedge fund manager Bill Hwang which collapsed last
month.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
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56.85 |
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