Credit Suisse cuts dividend hit by Archegos scandal; executors resign

Swiss loan on Tuesday he announced several high-level staff departures and proposed a reduction in his dividend by weight great losses from the saga of the capital Archegos.

“Especially after the significant issue of the US-based hedge fund, the Board of Directors is changing its proposal on dividend distribution and withdrawing its proposals on variable fees from the Executive Board,” the Swiss lender said in a trading update.

Investment bank chief executive Brian Chin and chief risk officer and business compliance director Lara Warner will step down from their roles with immediate effect, the bank said.

Last week, Credit Suisse revealed that it expects large losses after the fall of the American hedge fund Archegos Capital. The bank was forced to throw away a significant amount of inventory to sever ties with the troubled family office, and now expects a pre-tax loss in the first quarter of about 900 million Swiss francs ($ 960.4 million).

“This includes a collection of CHF 4.4 billion due to the failure of the American hedge fund to meet its margin obligations, as we announced on March 29, 2021,” Credit Suisse added.

This is an evolving story that will be updated soon.