Article: Credit Suisse Prime Brokerage Heads Fired Over Archegos Blowup

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Gary Gensler is now head of the SEC. What comes next?

TYLER DURDEN, 19 April 2021

Apparently, firing half a dozen executives including its head of risk management (Lara Warner, also one of the most high-ranking women in the global financial services industry) hasn’t done enough to quiet shareholders’ demands for change atop Credit Suisse, the Swiss banking giant that reported a $4.7 billion loss from the collapse of Archegos Capital Management, with billions of losses likely to follow from the collapse for Greensill.

As CEO Thomas Gottstein clings to his position, the Wall Street Journal reported Monday that John Dabbs and Ryan Nelson will immediately step down as co-heads of prime services, the prime-brokerage unit responsible for extending all that credit to Archegos (as a reminder, for an explainer on how Archegos built its $100 billion massively leveraged position. Continue reading “Article: Credit Suisse Prime Brokerage Heads Fired Over Archegos Blowup”

Article: After Taking $4.7 Billion Hit, Credit Suisse Executives Step Downs

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After Taking $4.7 Billion Hit, Credit Suisse Executives Step Downs

Alicia McElhaney, 06 April 2021

The hits keep coming for investment banking giant Credit Suisse.

The firm announced Tuesday that it expects to take a CHF 4.4 billion (USD $4.7 billion) writedown following losses related to family office Archegos Capital Management’s failure to meet its margin requirements.

Executives are stepping down, and the firm has launched two investigations: one into Archegos, and another into Credit Suisse’s purchase of Greensill Capital’s supply chain debt. Thomas Gottstein, chief executive officer of the firm, called the losses tied to Archegos “unacceptable.” Continue reading “Article: After Taking $4.7 Billion Hit, Credit Suisse Executives Step Downs”

Article: Credit Suisse overhauls management as it takes $4.7 billion hit on Archegos

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Credit Suisse overhauls management as it takes $4.7 billion hit on Archegos

Brenna Hughes Neghaiwi, Matt Scuffham, 06 April 2021

ZURICH (Reuters) -Credit Suisse said on Tuesday it will take a 4.4 billion Swiss franc ($4.7 billion) hit from dealings with Archegos Capital Management, prompting it to overhaul the leadership of its investment bank and risk division.

The scandal-hit bank now expects to post a loss for the first quarter of around 900 million Swiss francs. It is also suspending its share buyback plans and cutting its dividend by two thirds. Continue reading “Article: Credit Suisse overhauls management as it takes $4.7 billion hit on Archegos”

Article: A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse

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A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse

TYLER DURDEN,  30 March 2021

Unlike the devastating London Whale debacle in 2012, which was all JPMorgan eventually drawn and quartered quite theatrically before Congress (and was a clear explanation of how banks used Fed reserves to manipulate markets, something most market participants had no idea was possible), this time JPMorgan was nowhere to be found in the aftermath of the historic margin call that destroyed hedge fund Archegos. Which is may explain why JPMorgan bank analyst Kian Abouhossein admits he is quite “puzzled” by the recent fallout from the Archegos implosion (or maybe JPM simply was not a Prime Broker of the notorious Tiger cub), which however does not prevent him from trying to calculate the capital at risk from the Archegos collapse. Continue reading “Article: A “Very Surprised” JPMorgan Calculates The Damage From The Archegos Collapse”

Subject: Thomas Gottstein

Subject of Interest

Dr. Thomas Gottstein is the CEO of Credit Suisse AG since Feb 2020. Dr. Gottstein was previously employed as a Chief Executive Officer by Credit Suisse (Schweiz) AG from 2016 to 2020. At Credit Suisse, he was also working at the Investment Banking Department Switzerland (1999-2002), he was the Head Equity Capital Markets Switzerland, Zurich (2002-2005), Austria and Scandinavia, London (2005-2007), Co-Head of Equity Capital Markets EMEA (2007-2009), Head of Investment Banking Coverage Switzerland (2010-2013), Head of Premium Clients Switzerland & Global External Asset Managers (2014-2015), CEO Swiss Universal Bank (2015-2020), and CEO of Credit Suisse (Schweiz) AG (2016-2020). In 1999, he started his career as a Group Controller in Zurich, and later on, he went to London to become an expert for Telecoms Investment Banking and Equity Capital Markets. He holds a Degree in Business Administration and Economics in 1989 and a Ph.D. in Finance and Accounting from the University of Zurich.

Biography 

Credit Suisse AG