CS hits raise risk questions

摘要

Problems are mounting for CREDIT SUISSE. The Swiss bank's revelation that it faces a substantial loss from its exposure to Archegos Capital Management is the fourth major problem it has had in as many months, and is likely to be far more damaging than the others from a financial and reputation perspective. It could whip the wheels from underneath CEO Thomas Gottstein just as his investment bank was getting on a roll after years of restructuring and trying to match arch-rival UBS for creating a successful bank providing investment banking services to entrepreneurs and the world's wealthy, with a Swiss bank and asset management arms adding to the mix. Credit Suisse is expected to suspend its share buyback plan this year, and may only restart it in the second half of 2022. More worrying, the Archegos blow could halt momentum in its investment bank just as the biggest Wall Street firms are trying to take advantage of buoyant capital markets and trading conditions.