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Credit Suisse To Boost Capital Ahead Of Further Archegos Hit

FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at a branch office in Zurich, Switzerland, April 14, 2021. REUTERS/Arnd Wiegmann

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…..

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