Brian Chin, chief executive of the Zurich based investment bank and Lara Warner, chief risk and compliance officer, have both stepped down from their respective roles.
Credit Suisse also issued a separate trading update on 6 April stating it “would expect to report a pre-tax loss for 1Q 2021 of approximately CHF 900m. This includes a charge of CHF 4.4bn in respect of the failure by a US-based hedge fund to meet its margin commitments as we announced on March 29, 2021.”
“This will negate the very strong performance that had otherwise been achieved by our investment banking businesses and the increase in the year-on-year profits in all three of our wealth management businesses, as well as in asset management, with particular strength in our Asia Pacific division”, Credit Suisse said in the update.
The board of directors has launched investigations into both of these matters which will not only focus on the direct issues arising from each of them, but also reflect on the broader consequences and lessons learned.”
“We acknowledge that both the US hedge fund and the supply chain finance fund matters require substantial further review and scrutiny. The board of directors has launched investigations into both of these matters which will not only focus on the direct issues arising from each of them, but also reflect on the broader consequences and lessons learned.
“We have also undertaken senior management changes within the Investment Bank division and within the Risk and Compliance organization as separately announced today.”
Thomas Gottstein, CEO of Credit Suisse Group said: “The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable. In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders. Together with the board of directors, we are fully committed to addressing these situations. Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.”
Its first quarter 2021 financial results will be published on April 22, 2021.