Print Magazine
Brussels Morning Newspaper
Thursday, June 30, 2022
No Result
View All Result
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
  • Home
    • About Us
  • EU institutions
    • Commission
    • Parliament
    • Council
  • Europe
  • World
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • The American Angle
    • Europe With Transparency
    • Sustainable Perspective
    • Place de la Bourse
    • The Macro-Economist
    • Southeast Europe
Brussels Morning Newspaper
No Result
View All Result
Home Economy

Damning review blames Credit Suisse’s slump on poor risk management

Ivan Fischer by Ivan Fischer
29 July 2021
in Economy
Damning review blames Credit Suisse’s slump on poor risk management
Share on FacebookShare on Twitter

Brussels (Brussels Morning) An external review of Credit Suisse’s risk management practices has resulted in a damning report that blames corporate management for its “lackadaisical” attitude towards risk and at the same time having a “lack of accountability”.

Switzerland’s second-largest bank, considered to be one of the nine global “bulge bracket” banks, took a severe 5.5-billion dollar hit with the collapse of the Archegos hedge fund earlier this year, making it the biggest loser among international lenders affected by the fund’s misfortune. Its chief Swiss rival, UBS, lost less than 1 billion as Archegos folded.

For Credit Suisse, the Archegos loss came as the bank was still trying to absorb the losses incurred by the insolvency of Greensill Capital, one of its key associates. Greensill filed for insolvency in March as it defaulted on a loan to Credit Suisse, with the bank announcing that its supply-chain funds could lose up to 3 billion dollars of their 10 billion dollar value.

The review by the law firm Paul Weiss, Rifkind, Wharton & Garrison, published today, blames the Archegos-related losses primarily on “fundamental failure of management and controls”. The report notes that the bank’s Prime Services division was focused on maximising short-term profit, which failed to rein in Archegos’ risk-taking.

The bank responded to the review by stating it would put risk management front and centre in its decision-making process in the future. Credit Suisse has so far taken action against 23 of its employees over the Archegos debacle. Nine were fired. A total of 70 million dollars in penalties was collected from the affected staff.

Last month, bank insiders revealed that Credit Suisse was already planning for a major overhaul of its management organisation, with plans in place to scrap the decentralised regional structure, which it believes enabled its client managers to take risks without due accountability.

Latest post

EC sues member states over pollution

Air pollution responsible for 10% of all cancer cases in Europe

5 hours ago
Ukraine,,Russia,And,Eurounion,Countries,Military,Conflict.,Geopolitical,Concept.

Poland welcomes stronger US military presence

5 hours ago

Most Read

  • These are the 10 highest paying jobs in the Europe in 2022

    These are the 10 highest paying jobs in the Europe in 2022

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Luxembourg?

    0 shares
    Share 0 Tweet 0
  • Energy Recovery Fund

    0 shares
    Share 0 Tweet 0
  • What Are The Highest Paying Jobs In Finland?

    0 shares
    Share 0 Tweet 0
  • A taste of Croatian flavors of the diplomacy in Brussels

    0 shares
    Share 0 Tweet 0
Facebook Twitter Youtube LinkedIn

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

Category

  • Ambassador’s Corner
  • Belgium News
  • Brussels
  • Commission
  • Council
  • Culture and Society
  • Diplomacy
  • Economy
  • EU Institutions
  • Europe
  • Europe With Transparency
  • Features
  • In Depth
  • Member States
  • Middle East Eye
  • Opinion
  • Our pick
  • Parliament
  • Place de la Bourse
  • Southeast Europe
  • Sustainable Perspective
  • The American Angle
  • The Macro-Economist
  • Uncategorised
  • US Elections
  • World

More info

  • About Us
  • Advertising
  • Cookies Policy
  • Contact Us
  • FAQ
  • Jobs

Brussels Morning Newspaper - All Rights Reserved © 2020

No Result
View All Result
  • Home
  • About Us
  • EU Institutions
    • Parliament
    • Commission
    • Council
  • Europe
  • World
  • Member States
  • Economy
  • Culture and Society
  • In Depth
    • Ambassador’s Corner
    • Europe With Transparency
    • Place de la Bourse
    • The Macro-Economist
    • Sustainable Perspective
    • The American Angle
    • Southeast Europe
  • Print Magazine

Brussels Morning Newspaper - All Rights Reserved © 2020

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT