Credit Suisse to reveal losses from Archegos; 2 execs to depart -sources

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Credit Suisse will announce the departure of two senior executives and detail how much it expects to lose through its exposure to family office ...

NEW YORK -Credit Suisse Group AG will on Tuesday detail losses from its relationship with Archegos Capital Management LP after dumping over US$2 billion worth of stock to end exposure to the troubled investor, two sources familiar with the matter said.

The two executives are paying the price for a year in which Credit Suisse's risk management protocols have come under harsh scrutiny, with two major relationships turning sour in quick succession, saddling the bank with what JPMorgan Chase & Co analysts estimate could add up to US$7.5 billion. While sources have said some banks, including Goldman Sachs Group Inc, Morgan Stanley and Deutsche Bank AG, managed to exit the trades without taking a hit, others have ended up with losses. Japan's Nomura Holdings Inc has flagged a possible US$2 billion loss, for example. Nomura declined to comment.For Credit Suisse, the Archegos episode came just weeks after the demise of another major client - the British finance firm Greensill.

While some banks were able to offload their collateral earlier, Credit Suisse still had shares left. On Monday, it offered 34 million shares of ViacomCBS priced between US$41 to 42.75; 14 million American depository receipts of Vipshop Holdings Ltd between US$28.50 and US$29.50; and 11 million shares of Farfetch Ltd, priced between US$47.50 and US$49.25 in secondary offerings, a source familiar with the situation said.

 

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