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Two Credit Suisse bosses leave in fallout from Greensill and Archegos collapses

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August Graham, PA City Reporter
·2-min read
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Credit Suisse has parted ways with two senior executives after it revealed a multibillion-pound hit from its involvement with a failed US hedge fund and the fallout from the collapse of Greensill Capital.

Brian Chin, chief executive of Credit Suisse’s investment bank, and Lara Warner, chief risk and compliance officer, are set to leave, the bank said on Tuesday.

It came as the Swiss giant revealed that it would lose 4.4 billion Swiss francs (£3.4 billion) from the failure of hedge fund Archegos.

Credit Suisse was also a major backer of Greensill Capital, which entered administration last month.

Greensill focused on supply chain lending, and counted Liberty Steel’s parent company, GFG Alliance, among its big customers.

Its collapse raised concerns over the future of the steel company, which employs thousands of people across a dozen sites in the UK.

Credit Suisse has not yet put a figure on what Greensill’s failure is likely to cost it, but the charge from the collapse of Archegos will push it to a pre-tax loss of around 900 million Swiss francs (£693 million) in the first three months of this year.

The charge negated what Credit Suisse said had otherwise been a “very strong performance” in its investment banking business.

It suspended the programme of buying back shares from its investors.

“The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,” said chief executive Thomas Gottstein.

“In combination with the recent issues around the supply chain finance funds, I recognise that these cases have caused significant concern amongst all our stakeholders.”

The board has launched investigations into Credit Suisse’s role in both Greensill and Archegos.

“We are fully committed to addressing these situations,” Mr Gottstein said.

“Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.”