Credit score Suisse financial institution.
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LONDON — Credit score Suisse warned Monday of a “extremely important” hit to to its first-quarter outcomes, after it started exiting positions with a big U.S. hedge fund that defaulted on margin calls final week.
In a buying and selling replace earlier than the market open, the Zurich-based lender mentioned quite a few different banks have been additionally affected and had begun exiting their positions with the unnamed agency.
“Whereas presently it’s untimely to quantify the precise dimension of the loss ensuing from this exit, it may very well be extremely important and materials to our first quarter outcomes, however the constructive tendencies introduced in our buying and selling assertion earlier this month,” Credit score Suisse mentioned.
The financial institution added that it will present an additional replace on the matter “sooner or later.”
The most recent developments come amid a tumultuous 18 months for Credit score Suisse. Earlier this month, the financial institution introduced a shakeup of its asset administration enterprise and a suspension of bonuses because it appeared to include the injury from the collapse of British provide chain finance agency Greensill Capital.
Credit score Suisse’s asset administration unit held $10 billion of the agency’s funds and famous that some buyers had threatened authorized motion.
In the meantime, in February 2020, former CEO Tidjane Thiam resigned following a spying scandal that engulfed the financial institution in 2019. Thiam maintained that he had no data of the surveillance of two former colleagues, together with departed wealth administration boss Iqbal Khan.
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