Credit Suisse, a Swiss multinational investment bank and financial services company, has been in the news for a variety of reasons in recent years. Here are some notable events.
Losses from the Archegos scandal
In March 2021, Credit Suisse suffered significant losses from its exposure to Archegos Capital Management, a family office that defaulted on margin calls from several banks. Credit Suisse was one of the largest lenders to Archegos and ended up losing more than $4 billion as a result of the scandal.
Greensill Capital fallout
Credit Suisse was also impacted by the failure of Greensill Capital, a supply chain finance company that lent money to companies against their invoices. Credit Suisse had invested in Greensill’s funds and was forced to freeze $10 billion of funds that were invested in the company’s debt securities.
CEO resignation
In April 2021, Credit Suisse CEO, Thomas Gottstein, announced his resignation amid the bank’s losses from the Archegos scandal and the Greensill Capital fallout.
Risk management failures
Credit Suisse has been criticized for its risk management practices, particularly in relation to its exposure to Archegos and Greensill. The bank has since announced plans to overhaul its risk management systems and has pledged to reduce its exposure to risky investments.
Overall, Credit Suisse has been grappling with a number of challenges in recent years, including regulatory scrutiny, reputational damage, and financial losses. The bank has acknowledged these issues and is taking steps to address them, but it remains to be seen how successful its efforts will be.