A Swiss flag flying over a Credit Suisse sign in Bern, Switzerland
FABRICE COFFRINI | AFP | Getty Images
Credit Suisse announced on Tuesday several exits of high-level employees and proposed a cut in its dividends as it weighs the heavy losses of the Archegos Capital saga.
“Particularly after the important issue of hedge funds based in the United States, the Board of Directors is changing its proposal on the distribution of dividends and withdrawing its proposals for variable compensation from the Executive Board,” said the Swiss lender in a commercial update.
Investment Bank CEO Brian Chin and Chief Risk and Compliance Officer Lara Warner will step down immediately, the bank said.
Last week, Credit Suisse revealed that it expected heavy losses in the wake of the collapse of the American hedge fund Archegos Capital. The bank was forced to divest a significant amount of shares to break its ties to the troubled family office and now expects a pre-tax loss of about 900 million Swiss francs ($ 960.4 million) in the first quarter.
“This includes a CHF 4.4 billion charge for the failure of a United States hedge fund to meet its margin commitments, as we announced on March 29, 2021,” added Credit Suisse.
This is a story in development and will be updated soon.