Credit Suisse Claws Back Pay as It Faults Staff for Archegos
- Bank recouped $70 million in pay and ousted nine executives
- Employees ‘systematically ignored’ risk systems, report says
This article is for subscribers only.
Credit Suisse Group AG’s $5.5 billion of losses tied to Archegos Capital Management stemmed from years of mistakes and misjudgments that continued right up until the days before the family office’s implosion -- when the bank handed the firm back $2.4 billion in collateral.
A report prepared by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP concluded while the bank’s systems identified the risks, they were “systematically ignored” by a prime services unit with a “lackadaisical attitude toward risk.”