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NEW YORK – Credit Suisse will announce the departure of two senior executives and detail how much it expects to lose from its exposure to the Archegos Capital family office in an investor update on Tuesday, sources familiar with the matter said.
The Swiss bank will say that risk director Lara Warner and Brian Chin, the CEO of its investment bank, will leave the bank, the sources said on Monday.
CREDIT SUISSE HIT WITH S&P RATINGS CUT IN ARCHEGO TIES
The default on margin calls by Archegos, a family office run by former Tiger Asia manager Bill Hwang, caused a handful of banks to shed billions of dollars of their leveraged businesses last month.
Credit Suisse was still reversing its positions on Monday, the sources said.
Credit Suisse will announce the departure of two senior executives and detail how much it expects to lose from its exposure to the Archegos Capital family office in an update for investors on Tuesday. (Getty Images)
Its losses could reach $ 5 billion, the sources said, a figure the bank declined to comment on.
The bank was already facing scrutiny over its relationship with British finance company Greensill, which went bankrupt last month.
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The combined impact of both relationships could reach $ 7.5 billion, JPMorgan said on Monday.
The bank must say that Warner and Chin will pay the price for these bankruptcies by leaving, the sources said. CEO Thomas Gottstein will remain in office.