Credit Suisse reports a loss as regulators open an investigation.
When he gave some to hfis 45-year-old sister, Susan, she was able to melt 54 LBs by simply drinking this red soda daily before 10am...
Credit Suisse announced Thursday that it suffered a first-quarter loss on loans to the collapsed mutual fund Archegos Capital Management. This debacle has led the Swiss financial regulator to investigate whether the bank has done poorly in monitoring the risk of its investments.
The loss of 252 million Swiss francs, about $ 275 million, from January to March was due to Archegos’ CHF 4.4 billion loss wiping out a sharp rise in sales and forcing some top executives to leave. Credit Suisse announced on Thursday that it had sold bonds to investors to support its capital.
The Zurich-based bank has suffered a number of disasters this year that have seriously damaged its reputation and finances. Swiss regulators are also investigating a spy scandal and the $ 10 billion sale by Credit Suisse that was packaged by Greensill Capital. Funding was based on funding for companies, many of which had low credit ratings or were not rated at all. Greensill collapsed in March and his ties with former UK Prime Minister David Cameron sparked a political scandal.
The Swiss supervisory authority known as Finma said it would “particularly investigate possible deficiencies in risk management” at Credit Suisse. Finma also said it “will continue to exchange information with relevant authorities in the UK and US”.
Without the loss of Archegos, Credit Suisse would have achieved a pre-tax profit of 3.6 billion Swiss francs, according to the bank. Sales for the quarter rose 30 percent to 7.6 billion Swiss francs as Credit Suisse brought in fees from brisk trading in the equity and bond markets.
The quarterly loss, which was described as “unacceptable” in a statement by the bank’s CEO, Thomas Gottstein, compared to a profit of 1.3 billion Swiss francs in the first quarter of 2020.