Credit Suisse is poised to detail its failings after it recorded more than $5 billion in losses on business with family office-hedge fund Archegos, media reports say.
Zurich-based Credit Suisse failed on several levels of due diligence with prime brokerage client, the bank's board-led review of the events its poised to reveal, «Bloomberg» reported on Wednesday, citing several sources familiar with the findings.
However, the review failed to find criminal behavior, according to the report. The Swiss lender plans to reveal these and other results of the review with second-quarter results due Thursday, the newswire said.
Dual Trash Fires
Specifically, Credit Suisse bankers fell down monitoring Archegos' positions, which grew to tens of billions of dollars, according to the report. «Bloomberg» corroborates earlier reporting by the «Financial Times» that the Swiss bank earned marginal fees in catering to the New York-based prime brokerage client.
Archegos is one of two car crashes at Credit Suisse (the second is its $10.1 billion Greensill fund implosion). The losses from the collapse of the hedge fund, led by Bill Hwang, have led to a swathe of departures from top management, including risk boss Lara Warner and top investment banker Brian Chin in April.
António Horta-Osório, who took over as chairman of Credit Suisse 12 weeks ago from long-standing overseer Urs Rohner, pledged a review of strategy, risk, and culture. Earlier this month, he signaled that investors and employees shouldn't expect much clarity on it until at least year-end.
