ZURICH (Reuters) – Credit Suisse (SIX:CSGN) will raise over $2 billion to strengthen its capital base after flagging a further hit from the collapse of U.S. investment fund Archegos and a shrinking of the prime brokerage unit responsible for the multi-billion dollar debacle.
The demise of Archegos and another major client, British finance firm Greensill, have plunged Credit Suisse into crisis, triggering losses, sackings and bonus cuts at a time when rivals are revelling in bumper profit from trading and dealmaking.
In a further blow for Chief Executive Thomas Gottstein, Switzerland’s financial regulator has opened enforcement proceedings against the bank over how it handled the risks around Archegos and Greensill. Read more…..
Chart of the Day
Often described as a “chameleon,” Peter Lynch adapted to whatever investment style worked at the time. It is said that his work schedule, the equivalent of what we would call today “24/7,” did not have a beginning and an end. He talked to company executives, investment managers, industry experts and analysts around the clock.