Credit Suisse has closed bulk of exposure to Archegos – Source

ZURICH (Reuters) – Credit Suisse has substantially reduced the vast bulk of its exposure to Archegos, a source familiar with the matter said, adding some residual risk remained despite its positions having been substantially eliminated.

Switzerland’s second-largest lender on Tuesday announced an estimated loss of 4.4 bln Swiss francs ($4.69 bln) from its relationship with Archegos Capital Management LP after offloading over $2 billion worth of stock to end exposure to the troubled investor.

The scandal-hit bank now expects to post a loss for the first quarter of around 900 million Swiss francs.

The Archegos fallout is the second major scandal for Credit Suisse in just over a month after the collapse of Greensill Capital, which led to the closure of its $10 billion supply chain funds which invested in bonds issued by Greensill.

That matter had not resulted in a material loss for the bank in the first quarter, the source said, as the bank does not hold trading exposure to Greensill.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.