Credit Suisse’s losses linked to the immediate sale of Archegos reached $ 4.7 billion, and executives left the bank.

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Losses at Credit Suisse linked to the collapse of Archegos Capital Management will exceed 4.4 billion Swiss francs ($ 4.7 billion), the bank said on Tuesday, as it cut dividends and detailed executive departures after two crises in the past month. . Credit Suisse CSGN shares, + 0.59%, fell 2% in early European trading before reducing losses and falling below the fixed level. The stock is down about 20% since March 29, when the bank said a breach of a US hedge on margin calls could have a “very significant and material” impact on quarterly results.

Credit Suisse said it now expects to report a loss of 900 million francs for the first quarter of 2021, driven by a charge of 4.4 billion francs related to losses from the liquidation sale at banks linked to Archegos at the end of March. “This will negate the very strong performance that would otherwise have been achieved by our investment banking businesses,” the Swiss group said in a business update. Read more: Here are the complex bets at the heart of the ‘unprecedented’ Archegos-linked $ 30 billion margin call The bank also announced plans to cut its dividend to 0.1 francs per share and said both its chief banking officer investment manager, Brian Chin, as its director The risk and compliance officer, Lara Warner, would step down. The dividend cut and executive exit comes after two crises for Credit Suisse in March. Earlier in the month, before the collapse at Archegos, Credit Suisse froze $ 10 billion in funds connected to Greensill Capital, a now-insolvent supply chain finance company. Read this: Credit Suisse may incur Greensill-related charges The Credit Suisse update came on an otherwise bullish trading day in Europe. The pan-European Stoxx 600 SXXP, + 0.81%, was up 0.8%, while both the London FTSE 100 UKX, + 1.36%, and the Frankfurt DAX DAX, + 0.98% were up more than 1%. The CAC 40 PX1, + 0.66% in Paris rose 0.7%. Dow YM00 futures, -0.10% were heading lower around 20 points, ready for a soft open after rising more than 370 points on Monday to close at a new high of 33,527. Analysts noted that the continued spread of coronavirus infections in Europe remains a broader concern for markets in the coming week. “The COVID pandemic is likely to continue to dominate given the nervousness in several countries over the increase in the number of cases,” said Henry Allen, analyst at Deutsche Bank. “Europe has already been moving towards tighter restrictions, with the French shutdown starting on Saturday,” Allen added. “However, the main exception to this pattern has been the United Kingdom, which has one of the most advanced vaccination programs in the world.” Stocks in Asia moved lower, with the Shanghai Composite SHCOMP -0.04% falling 0.4%. “One factor that appears to be weighing on the markets in the region,” Allen said, is reports that the Chinese central bank has asked lenders to cut credit for the rest of the year, according to Bloomberg. BP BP, + 3.50% stood out in London trading, with shares in the major oil company soaring 3% after the group said it expects to hit its net debt target of $ 35bn in the first quarter. 2021, earlier than expected and paving the way. for share buybacks. The group’s net debt at the end of 2020 was $ 38.9 billion. SAP SAP, + 1.95% shares rose 2.5% in Frankfurt, after CNBC reported that tech giant Google GOOGL, + 4.19% will stop using Oracle’s financial software in the coming weeks and will switch to SAP. Shares of French biotech Valneva VLA, + 4.67%, rose close to 6%, after the group reported initial positive results for its COVID-19 vaccine.