Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Credit Suisse has kicked off the morning with a warning it will take a 4.4 billion Swiss franc hit (£3.4bn) over the Archegos Capital fallout. It comes after the US hedge fund was forced to liquidate billions of dollars worth of positions after being hit by margin calls just over a week ago.
Compounded by the crisis surrounding Greensill Capital, the Swiss banking giants says is now facing a 900m Swiss franc loss (£690m) for Q1.
And heads are starting to roll.
In a market announcement this morning, Credit Suisse said at least two executives will be gone by May:
Following the significant US-based hedge fund matter, Brian Chin, CEO of the Investment Bank is stepping down from his role on the executive board, effective April 30, 2021.
Lara Warner, Chief Risk and Compliance Officer, is stepping down from her role on the executive board, effective April 6. Both of them will leave the bank.
Those executives lucky enough to keep their jobs will see their bonuses scrapped this year, including both their short-term bonuses for 2020 and their long-term bonuses linked to the performance for 2021.
Meanwhile, its outgoing chairman Urs Rohner is waiving his 1.5m Swiss franc fee (£1.2m) that would have been awarded for his work over the past year.
Credit Suisse chief executive Thomas Gottstein is taking a hardline over the recent issues. He said in a statement this morning:
The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable. In combination with the recent issues around the supply chain finance funds, I recognise that these cases have caused significant concern amongst all our stakeholders.
Together with the board of directors, we are fully committed to addressing these situations. Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history.
We’ll keep an eye on how shareholders react this morning.
In the meantime, European stocks are broadly expected to rise following the long bank holiday weekend: