Beleaguered Credit Suisse to raise US$2b

Advanced Search

The story appears on

Page A11

April 23, 2021

GET this page in PDF

Free for subscribers

View shopping cart

Beleaguered Credit Suisse to raise US$2b

Source: Agencies | 00:14 UTC+8 April 23, 2021 |

Print Edition

Credit Suisse will raise over US$2 billion to strengthen its capital base after flagging a further hit from the collapse of US investment fund Archegos and a shrinking of the prime brokerage unit responsible for the multi-billion dollar debacle.

The demise of Archegos and another major client, British finance firm Greensill, have plunged Credit Suisse into crisis, triggering losses, sackings and bonus cuts at a time when rivals are revelling in bumper profit from trading and dealmaking.

In a further blow for Chief Executive Thomas Gottstein, Switzerland’s financial regulator has opened enforcement proceedings against the bank over how it handled the risks around Archegos and Greensill.

Credit Suisse said it expects a hit of about 600 million Swiss francs (US$655.81 million) for the April-June quarter after exiting most of its Archegos-related positions. A 4.4- billion franc hit in January-March wiped out what would have been a stellar trading period.

Its shares fell 5.7 percent.

Business

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Beleaguered Credit Suisse to raise US$2b

Email this to your friend