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By Dhirendra Tripathi
Investing.com – Credit Suisse (NYSE:CS) was trading 3% lower Thursday as concerns mounted over what Finma’s probe would throw up as the Swiss regulator gets ready to initiate enforcement proceedings against Switzerland’s second largest commercial bank for any role in the collapse of Greensill Capital and Archegos.
Credit Suisse shares are down by a third from their 52-week high of $14.95.
The bank has suspended its share buyback and cut dividend. Investors were also not impressed by Credit Suisse raising $2 billion to bolster its capital.
Credit Suisse posted a loss of 757 million Swiss francs ($825 million) in the first quarter as the Archegos hit wiped out gains from a bumper trading business.
Thomas Gottstein, chief executive officer of Credit Suisse Group AG, minced no words in his statement: “The loss we report this quarter, because of this matter, is unacceptable”.
The total Archegos charge for the first quarter stands at 4.4 billion Swiss francs, the company said in a release.
It said another damage of 600 million Swiss francs on the same account was likely. The company has now exited 97% of the related positions with respect to Archegos.