Plaza Financiera via flickr
UK fintech start-up Greensill Capital declared bankruptcy on March 8. The company had been providing short-term advance loans to finance its clients' supply chains. Its main client was GFG Alliance, which had built its business on buying up distressed steel assets. The company was also on the verge of bankruptcy as the UK authorities had already refused to bail it out because of its many problems. Greensill Capital financed its clients' supply chains mainly through Credit Suisse funds. The Swiss bank provided $10 billion for these operations. The bank is trying to get these funds back to its investors, but so far only a fraction of the money has been returned. Investors are already preparing class action lawsuits against the bank.
On 29 March it was reported that Bill Hwang's family fund Archegos Capital Management was in trouble, having "defaulted on margin calls made by... Credit Suisse and certain other banks", the Swiss bank said in a statement at the time. Credit Suisse said that Archegos Capital is expected to suffer a net loss of $4.7 billion from the default and expects to post a net loss of around $955 million for the first quarter of 2021.
The bank's board of directors has proposed to relieve Brian Chin, head of investments, and Lara Warner, director of risk and compliance, of their positions. Mr Chin will step down on 30 April and Ms Warner - on 6 April. It was recommended that board members should refrain from resigning until an internal investigation into the two scandals is completed.
In addition, the board proposed stripping board members of bonus payments tied to the bank's 2020 performance, as well as payments that board members could receive for Credit Suisse's good performance in 2021-2023. Chairman Urs Rohner also proposed not to pay him a personal bonus of $1.6m. The board accepted this proposal. Mr Rohner himself will leave his post on 30 April, as announced in December 2020.
source: reuters.com
On 29 March it was reported that Bill Hwang's family fund Archegos Capital Management was in trouble, having "defaulted on margin calls made by... Credit Suisse and certain other banks", the Swiss bank said in a statement at the time. Credit Suisse said that Archegos Capital is expected to suffer a net loss of $4.7 billion from the default and expects to post a net loss of around $955 million for the first quarter of 2021.
The bank's board of directors has proposed to relieve Brian Chin, head of investments, and Lara Warner, director of risk and compliance, of their positions. Mr Chin will step down on 30 April and Ms Warner - on 6 April. It was recommended that board members should refrain from resigning until an internal investigation into the two scandals is completed.
In addition, the board proposed stripping board members of bonus payments tied to the bank's 2020 performance, as well as payments that board members could receive for Credit Suisse's good performance in 2021-2023. Chairman Urs Rohner also proposed not to pay him a personal bonus of $1.6m. The board accepted this proposal. Mr Rohner himself will leave his post on 30 April, as announced in December 2020.
source: reuters.com
