Credit Suisse takes $4.7 billion hit from Archegos hedge fund scandal

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Credit Suisse takes $4.7 billion hit from Archegos hedge fund scandal; execs step down

• Last week, Credit Suisse revealed that it was expecting heavy losses in the wake of the meltdown of U.S. hedge fund Archegos Capital.
  
• It took a charge of $4.7 billion as a result and now expects a first-quarter pre-tax loss of around $960.4 million.
  
• Investment Bank CEO Brian Chin and Chief Risk and Compliance Officer Lara Warner will step down from their roles with immediate effect.
  

Credit Suisse on Tuesday announced several high-level staff departures and proposed a cut to its dividend as it weighs heavy losses from the Archegos Capital saga.

The Swiss lender now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($960.4 million), after taking a charge of 4.4 billion Swiss francs as a result of the scandal.

“The significant loss in our Prime Services business relating to the failure of a U.S.-based hedge fund is unacceptable,” CEO Thomas Gottstein said in a trading update.

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