Greensill is claiming another scalp at the Swiss bank, which dismissed a former high-ranking asset management executive over the $10.1 billion supply chain scandal.
Zurich-based Credit Suisse has fired Michel Degen, two sources familiar with the matter told finews.com on Thursday.The Swiss banker is the fourth Credit Suisse banker to leave following a legal review of Greensill, a now-defunct U.K. supply chain financier.
Degen was in March removed as the head of its asset management activities in Switzerland and wider Europe, the Middle East, and Africa, when the extent of Greensill's problems emerged. His imminent dismissal was reported by the «Financial Times» (behind paywall) on Wednesday. A spokeswoman for the bank declined to comment.
Thorniest Obligors Up Next
Credit Suisse's board under António Horta-Osório is reportedly still debating how open it wants to be with a legal report over how the bank stumbled into a $10.1 billion fund shambles. The Swiss bank's surge in supply chain funds occurred parallel to the wind-down of GAM absolute return funds steeped in Greensill assets.
Credit Suisse, which has secured roughly 72 percent of the funds' total or $7.1 billion in cash, is now tackling the thorniest obligors, including British magnate Sanjeev Gupta's GFG group of companies.
Swath of Credit Suisse Exits
The fund disaster represents the Swiss bank's most pressing legal and regulatory issue – and led or contributed to a swath of exits. Credit Suisse dismissed two portfolio managers on Wednesday.
Higher-ups have left as well: former Credit Suisse asset management boss Eric Varvel left and reportedly may have to relinquish up to $10 million in bonuses. The bank had already parted ways with risk chief Lara Warner in April, following Greensill as well as more than $5 billion in losses on Archegos.
