CREDIT SUISSE AXES TOP EXECS AFTER LOSING BILLIONS
CREDIT SUISSE has axed two senior executives after it suffered billions of pounds worth of losses amid the fallout from two failed business – one of them with controversial links to David Cameron.
Investment banking chief Brian Chin and chief risk officer and head of compliance Lara Warner both announced they will be stepping down this month.
The Switzerland-based banking giant said it is set to lose £2.53billion from the collapse of British finance firm Greensill Capital, the key backer of Liberty Steel.
Greensill, which filed for insolvency last month, is mired in a row over its links to ex-prime minister Mr Cameron, who was a paid lobbyist for the firm.
He reportedly pleaded with chancellor Rishi Sunak to give Greensill access to a state-backed Covid loan scheme.
Credit Suisse also expects to lose £3.4billion from the collapse of hedge fund Archegos, run by billionaire Bill Hwang. It has forecast a first-quarter loss across all divisions of £690million and announced cuts in dividends and staff bonuses.
Officials said Christian Meissner would be appointed chief of the investment bank from May 1, with Joachim Oechslin and Thomas Grotzer filling the chief risk and compliance roles.
‘The significant loss in our prime services business relating to the failure of a US-based hedge fund is unacceptable,’ Credit Suisse chief executive Thomas Gottstein said.
‘Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.’
Jason Teh, chief investment officer at Vertium Asset Management, said: ‘Obviously heads are rolling. After any sort of blow up there’s always tighter control.’