CREDIT SUISSE POSTS ‘UNACCEPTABLE’ ARCHEGOS LOSS
Credit Suisse on Thursday reported a net loss of 252 million Swiss francs ($275 million) for the first quarter following the implosion of US-based hedge fund Archegos Capital.
The bank reported that the loss reflected a “significant charge with respect to the US-based hedge fund matter in 1Q21 (first quarter), offsetting positive performance across wealth management and investment banking.”
In response, the bank raised roughly $2 billion to bolster its capital position. To do this, it sold mandatory convertible notes to “a selected group of core shareholders, institutional investors and ultra-high-net-worth individuals.”