Credit Suisse Archegos Aftershocks Reverberate as Profit Plunges
- Swiss bank sees fixed income, equities, advisory revenue drop
- Bank has been paring risk after hit from Archegos implosion
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As Credit Suisse Group AG tried to explain to investors how the Archegos Capital Management crisis happened, the bank’s earnings showed the aftershocks are still rippling through its key businesses.
Second-quarter profit plunged on a slump in trading that was exacerbated by a $653 million loss related to the implosion of the U.S. family office, while in Asia the bank turned away billions of dollars in assets as it cut exposure to risky clients. In a separate report, the firm blamed key personnel for failing to prevent the Archegos hit, saying they “systemically ignored” build up of risks.