Two senior Credit Suisse executives will be removed after the bank suffered a $4.7 billion loss from the collapse of the U.S. hedge fund, Archegos Capital.
Archegos Capital Management was managed by 57-year-old, Bill Hwang. He borrowed billions of dollars from Wall Street banks and became one of the largest shareholders for ViacomCBS and Discovery stocks. When ViacomCBS saw a fall in share prices in late March, the hedge fund did not have enough money to pay its lenders, forcing them into liquidation.
“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 statement. “Serious lessons will be learned.”
Chief Risk and Compliance Officer, Lara Warner, and Head of Investment Bank, Brain Chin, will be leaving the company the company said on Tuesday. Other executives will not receive bonuses for the 2020 financial year and, Urs Rohner, the board chairman will forgo $1.6 million in his salary.
Warner is leaving the company on April 6, and Joachim Oechslin will act as interim Chief Risk Officer. Chin will leave the company on May 1, and Thomas Grotzer will be interim Global Head of Compliance.
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