A 20-year-old first-gen college student with dwarfism shares how he landed an investment-banking job at Credit Suisse – and didn’t let a disability stand in his way

Kevin Truong, set to be Credit Suisse investment-banking analyst
Kevin Truong, 20, is set to join Credit Suisse as an investment-banking analyst next year.

  • Kevin Truong, 20, has lived with dwarfism since age of 5. His mother and sister share the condition.
  • Truong is now a first-generation college student attending the University of California, Berkeley.
  • He revealed that he’s going to work for investment bank Credit Suisse in a now-viral LinkedIn post.
  • See more stories on Insider’s business page.

Kevin Truong was diagnosed with dwarfism at age 5.

The native of Stockton, California, shares the condition with his mother and sister, who is currently a junior in high school.

“I got my fair share of people teasing me, asking why am I shorter than them,” Truong said in a recent interview with Insider. “In my early years, it was quite tough,” both physically and socially with other kids at school.

Truong, 20, comes from humble means. His parents are Vietnamese immigrants. His mother has largely stayed out of the workforce, he said, and his father is a professional landscaper and gardener. Vacations, generally, were an unfamiliar concept, and some of his earliest memories of being on an airplane came when he participated in diversity-recruiting initiatives in college.

He’s attending the University of California, Berkeley, where is now a senior studying business, thanks to roughly $30,000 in scholarships and tuition grants that he estimated he receives each year.

At Berkeley, Truong got his first taste of Wall Street through membership in Capital Investments, the school’s student-run investment fund. By the end of his first semester as a freshman, he’d begun the process of applying to a number of Wall Street banks’ internship programs, aiming to line one up for the summer after his sophomore year.

Just one firm reached back out to set up an interview: Credit Suisse. Truong was determined not to let the opportunity slip away.

The journey to Wall Street

Through a diversity-recruiting program at Credit Suisse, Truong ultimately partook in two internships at the firm. At the conclusion of his most recent internship, this past summer, he received a return offer to join its technology investment-banking coverage group after he graduates Berkeley next year.

He revealed the news in a now-viral post on LinkedIn earlier this month. It had garnered more than 66,000 reactions – mostly a mix of thumbs-up, hearts, and applause – as of mid-September.

“Three years ago when I came to Cal, I was fearful about how someone like me, a first generation college student from a low income background with no connections and no experience in the business world, could make it in a world seemingly dominated by students with vast networks and stellar resumes,” he wrote.

“Today, I am happy to say I proved myself wrong.”

For people with disabilities, finding employment can be a challenge

People living with disabilities continue to be marginalized in a variety of industries.

Just under 18% of people in the US who live with disabilities were employed in 2020, down slightly from the year before, according to a Bureau of Labor Statistics report published in February. Individuals living with a disability are likelier to work in service-oriented fields, the BLS said, and as many as a third work part-time.

It’s no different on Wall Street, which has long struggled to diversify its ranks. Indeed, just one disabled- and woman-owned floor broker operates on the New York Stock Exchange, CNBC reported earlier this month.

“Unfortunately I haven’t met anyone in the finance community that has dwarfism,” Truong said. “We’re definitely still very much a minority.”

Eventually, Truong hopes to pursue a role as an impact investor. Investing in social causes would enable him to expand on the work he’s done as an advising fellow with the Berkeley chapter of Matriculate, a nonprofit organization that supports students from low-income backgrounds in applying to university.

When Truong joins Credit Suisse after graduation, he’ll be on track to earn a starting salary of $100,000 before bonus. He’d like to experience travel, and a visit to his parents’ homeland of Vietnam is high on his list.

“I know my sister personally has always wanted to go to Hawaii,” he added. “I hope to take her there sometime in the next few years.”

Visits to Vietnam or Hawaii notwithstanding, though, Truong is traversing a different road now: the journey to Wall Street. He is adamant that no obstacle will prevent him from getting there.

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West Virginia Gov. Jim Justice is reportedly on the hook for $700 million in loans from collapsed lender Greensill

WV Gov Jim Justice
Jim Justice has been governor of West Virginia since 2017.

  • West Virginia Gov. Jim Justice is reportedly on the hook for $700 million in loans from Greensill, the collapsed financial firm.
  • Justice personally guaranteed loans Greensill made to his coal companies, The Wall Street Journal reported.
  • Credit Suisse is trying to claw back cash for people who invested in its Greensill-linked funds.
  • See more stories on Insider’s business page.

West Virginia Gov. Jim Justice is personally liable for around $700 million in loans that the collapsed financial firm Greensill Capital made to his coal companies, according to a report.

Justice and his wife guaranteed the loans from Greensill to his coal businesses, the Wall Street Journal reported, citing people familiar with the issue and documents.

Greensill, which collapsed into bankruptcy in March, had packaged the loans and sold them to Credit Suisse, The Journal reported. Now, Credit Suisse is in talks with Justice’s Bluestone Resources and other major borrowers from Greensill to recoup the money and repay investors, per The Journal.

The Swiss bank told investors in a recent notice that Bluestone owes nearly $700 million, the WSJ reported.

Bluestone said in a lawsuit brought in March that it had not expected to start repaying the loans until at least 2023.

The personal liability of Justice, who has been governor of West Virginia since 2017 and is a Republican, adds to his financial pressures. Forbes knocked the politician and businessman off its billionaires list earlier this year, due in large part to Greensill’s collapse.

Justice’s companies are also in legal disputes with other companies over payment contracts and coal deliveries, The Journal reported said. They have settled a number of disputes in recent years over alleged non-payment of bills, according to news outlet ProPublica.

Bluestone, Credit Suisse, and a representative for Justice did not immediately respond to requests for comment. Bluestone and Justice’s representatives declined to comment to The Journal.

As well as the guarantees from the governor and his wife, Justice’s son James C. Justice III guaranteed loans up to a certain limit, The Journal reported.

The collapse of Greensill has heaped pressure on Credit Suisse, which is frantically trying to recoup its losses. It said in April that it was focused on three main borrowers: Bluestone, British-Indian steel magnate Sanjeev Gupta’s GFG Alliance, and SoftBank-backed construction company Katerra.

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UBS chairman apologizes for Archegos loss and promises to enforce more transparency

2013 05 02T120000Z_519329562_GM1E9521DHR01_RTRMADP_3_UBS.JPG
Swiss bank UBS Chairman Axel Weber speaks during the company’s general shareholders meeting in Zurich on May 2, 2013.

  • UBS chairman apologized for the loss the Swiss bank suffered amid the Archegos meltdown, in an interview with Bloomberg.
  • Chairman Axel Weber blamed the lack of oversight particularly in family offices, which don’t have to disclose information about investments.
  • Weber said UBS is conducting an internal investigation into the fiasco.
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UBS Group Chairman Axel Weber apologized for the loss the bank suffered amid the Archegos Capital Management meltdown in March.

The Swiss bank announced a surprise $861 million loss in relation to the liquidation of fund manager Bill Hwang’s Archegos family office, which had highly leveraged positions in a handful of stocks.

Weber in an exclusive interview on Bloomberg TV blamed the lack of oversight particularly in family offices – entities typically established by wealthy families – which don’t have to disclose information about the firm to regulators, unlike hedge funds.

Weber urged regulators like the US Securities and Exchange Commission to enforce more transparency, adding that without action from official agencies, UBS itself would force more transparency at the bank.

“If it’s not enforced by regulators, we will enforce it because we need that information,” Weber told Bloomberg Wednesday. “If we finance activity, we want these disclosures and if clients are unwilling to give that, well there may be other banks that give them that same exposure, but it won’t be us.”

Given the “unusual” situation, Weber revealed that UBS is conducting an internal investigation to get to the root of the issue. The chairman did clarify that they are not subject to regulatory action.

“We’re not very happy with this event,” he said. “I’m hyper-focused on this …We’ve not changed our risk appetite. This was not within what should have happened. So we need to get to the bottom.”

Weber also clarified that no one will be stepping down at the bank as a result of the episode, adding that it was the process that needed improvement.

“I don’t see a single failure of a single part of the organization,” he said. “But what I do see is that the number of combinations that interacted wasn’t very good and so we need to improve each and every element of that so that those interactions don’t happen again.”

UBS, the world’s biggest wealth manager, joins Credit Suisse, Nomura Holdings, and Morgan Stanley which all lost billions of dollars in the wake of the Archegos blow-up.

The implosion of Archegos caused widespread chaos on Wall Street and exposed the fragility of the financial system, especially in lesser-known areas of the market such as total return swaps.

The founder grew his family office’s $200 million investment to $10 billion but did not need to register as an investment advisor since he was only managing his own wealth.

Hwang, a former Tiger cub, reportedly lost a staggering $8 billion dollars in 10 days.

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Credit Suisse posts Q1 loss of $275 million after Archegos blowup and says it expects more pain from the fund’s implosion

credit suisse blunders 2x1
Thomas Gottstein, Credit Suisse CEO.

Credit Suisse, Switzerland’s second-biggest bank after UBS, reported first-quarter earnings on Thursday that showed the bank witnessed a slightly narrower net loss than analysts had expected.

A net loss of 252 million francs ($275 million) beat the 815 million francs ($890 million) mean estimate conducted by the bank’s own poll of analysts.

The bank said it had exited 97% of its trading positions related to a US-hedge fund. Credit Suisse has consistently been reluctant to name the fund, but the bank has cushioned the blow from its remaining exposure to Archegos Capital.

It expects to incur related losses of another 600 million francs ($654 million) in the second-quarter this year and said it would raise $2 billion to shore up its capital, in the aftermath of the hedge fund’s collapse.

Here are the key numbers:

  • Net Revenue: CHF 7.6 billion ($8.3 billion) versus CHF 5.2 billion ($5.6 billion) in Q4
  • International wealth management pre-tax profit: CHF 523 million ($571.3 million) versus CHF 442 million ($482 million) estimated
  • Revenue from investment-banking division: CHF 3.9 billion ($5.4 billion) versus CHF 2.2 billion ($3 billion) a year ago
  • Net loss: CHF 252 million ($275 million) versus CHF 353 million ($385 million) in Q4

“Our results for the first quarter of 2021 have been significantly impacted by a CHF 4.4 billion charge related to a US-based hedge fund,” CEO Thomas Gottstein said in a statement. “The loss we report this quarter, because of this matter, is unacceptable.”

“Among other decisive actions, we have made changes in our senior business and control functions; we have enhanced our risk review across the bank; we have launched independent investigations into these matters by external advisors, supervised by a special committee of the Board; and we have taken several capital-related actions,” he added.

Swiss regulator FINMA announced the same day that it has opened enforcement proceedings against the bank after it suffered losses in connection with Archegos.

Credit Suisse has emerged as the hardest-hit among the banks affected by the Archegos collapse. Other banks were quicker to wind down their related positions, leaving them relatively unscathed. The Swiss lender was already battling with a controversy linked to supply-chain finance as it had $10 billion worth of funds tied to Greensill Capital.

The impact on Credit Suisse from both the Archegos and Greensill saga could add up to $8.7 billion, Bloomberg reported, citing JPMorgan analysts.

Shares in Credit Suisse fell 5% in early European trading.

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Credit Suisse just put $2 billion of Archegos-linked stocks on the market after the hedge fund’s meltdown, reports say

FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters at the Paradeplatz square in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann
  • Credit Suisse is still unloading Archegos-linked stocks after the US hedge fund’s collapse.
  • The lender put up about $2 billion worth of block trades after Tuesday’s market close, Bloomberg said.
  • Shares in Discovery and Chinese video-streaming website iQIYI were offered at the lower end of ranges.
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Credit Suisse put up large blocks of Archegos-related stocks on the market after regular trading on Tuesday, Reuters reported, citing multiple sources.

The stock offerings, including Discovery and iQIYI, amounted to roughly $2 billion, according to Bloomberg.

The Swiss bank isn’t yet done unloading stocks linked to Archegos, even though it’s already taken a $4.7 billion charge from the hedge fund’s collapse last month. Several top executives, including the chief risk officer and investment bank head, are departing following the fund’s failure to meet margin requirements.

In late March, Archegos used borrowed money to make large bets on some stocks until Wall Street banks forced it to sell over $20 billion worth of its shares as it couldn’t meet a margin call.

JPMorgan said this week global banks are expected to lose up to $10 billion following the fund’s implosion.

Tuesday’s block trades were offered at a discount to their closing prices. They included 19 million Class A shares of Discovery sold at $38.40, 22 million Class C Discovery shares sold at $32.35, and 35 million shares of Chinese online video-platform iQIYI at $15.85, Bloomberg said, citing one source.

Shares in Discovery and iQIYI fell sharply in after-hours trading on Tuesday. Credit Suisse fell 2% in morning trade on Wednesday.

Credit Suisse last week sold around $2.3 billion in block trades in Viacom, Vipshop, and Farfetch in an attempt to limit further losses from the fiasco.

A spokesperson for Credit Suisse didn’t immediately respond to Insider’s request for comment.

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Nomura to tighten financing for hedge fund clients in the wake of Archegos blowup, new report says

Nomura
  • Nomura is tightening financing for some hedge fund clients, per Bloomberg sources.
  • Japan’s largest brokerage is facing an estimated $2 billion loss due to the Archegos collapse.
  • Nomura will limit margin financing exceptions for hedge fund clients in order to prevent another blowup.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Nomura is reportedly tightening financing for some of its hedge fund clients in the wake of the $20 billion collapse of Archegos Capital.

Japan’s largest brokerage is facing an estimated $2 billion loss due to the family office blowup, according to unnamed Bloomberg sources.

The Archegos collapse started when the family office, run by Bill Hwang, used total return swaps to take on leverage and place concentrated bets on a handful of stocks like ViacomCBS and Discovery.

Then a decline in share prices sparked a massive margin call that Archegos was unable to meet, leading banks to liquidate the family office’s assets.

The result was combined losses of $10 billion for global banks, according to estimates from JPMorgan.

Now in order to prevent similar blow-ups in the future, banks are taking action to reduce risk associated with hedge fund clients. The Securities and Exchange Commission has also opened an investigation into the matter.

Specifically, Nomura is tightening leverage for some clients that were previously granted exceptions to margin financing limits, Bloomberg said, citing people with direct knowledge of the matter.

The Japanese firm is the second bank to take action after the Archegos collapse.

Credit Suisse said earlier in the week that it will change margin requirements on swap agreements to dynamic from static after the collapse. Dynamic margin requirements force clients to post more collateral as positions move down, rather than setting a fixed margin requirement at the onset of the leverage contract.

Before the Archegos implosion, Nomura had been hitting on all cylinders with net income reaching a 19-year high for the nine months ended in December.

Now though, the bank has been forced to cancel the planned issuance of $3.25 billion in senior notes and share prices are down roughly 20% from March 26 highs.

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Gen Z is going to have a hard time getting rich

gen z
Gen Z is set to make less money on stocks and bonds.

  • Gen Z will earn a third less on stock and bond investments than past generations, Credit Suisse found.
  • They can expect average annualized returns of just 2%, according to the bank’s investment returns yearbook.
  • Another obstacle for Gen Z: they’ve been the most unemployed during the pandemic.
  • See more stories on Insider’s business page.

Gen Z is walking a rocky road to getting rich.

They’re set to earn less than previous generations on stocks and bonds, according to Credit Suisse’s global investment returns yearbook.

In fact, the generation can expect average annual real returns of just 2% on their investment portfolios – a third less than the 5%-plus real returns that millennials, Gen X, and baby boomers have seen. Credit Suisse’s analysis took in average investment returns since 1900 and forecasted them going forward for Gen Z.

The yearbook acknowledges that marked deflation could increase bond returns, The Economist reported, but it said inflation is more of a concern. What the report calls a “low-return world” is yet another another financial obstacle for the generation, who may be on track to repeat millennials’ money problems.

A December Bank of America Research report called “OK Zoomer” found that the pandemic will impact Gen Z’s financial and professional future in the same way that the Great Recession did for millennials.

“Like the financial crisis in 2008 to 2009 for millennials, Covid will challenge and impede Gen Z’s career and earning potential,” the report reads, adding that a significant portion of Gen Z is entering adulthood in the midst of a recession, just as a cohort of millennials did. “Like a decade ago, the economic cost of this recession is likely to hit the youngest and least experienced generation the most.”

Gen Z was hit hardest in the workforce

Gen Z been been impacted the most in the workforce, facing the highest unemployment rates.

They entered a job market crippled by a 14.7% unemployment rate in May – greater than the 10% unemployment rate the Great Recession saw at its 2009 peak. Those ages 20 to 24 had an unemployment rate of nearly 27% when the unemployment peaked last April according to data from the St. Louis Fed, more than any other generation.

Recessions typically hit younger workers hardest in the short-term, but can reap long-term consequences.

“The way a recession can really hurt people just starting out can have lasting effects,” Heidi Shierholz, a senior economist and the director of policy at the Economic Policy Institute, previously told Insider. “There’s a lot of evidence that the first postgrad job you get sets the stage in some important way for later.”

Recession graduates typically see stagnated wages that can last up to 15 years, Stanford research shows. That was the case for the oldest millennials graduating into the Great Recession, who in 2016 saw wealth levels 34% lower than that of previous generations at the same age, per the St. Louis Fed.

A follow-up study showed that by 2019, this cohort had narrowed that wealth deficit down to 11%. Such financial catch-up could be an optimistic sign for Gen Z in terms of regaining any ground lost building wealth during the pandemic.

However, millennials have had a 5%-plus annualized investment return on their side. With a projected 2% annual return for Gen Z, building wealth may be even harder to do.

There’s more to building wealth

Of course, stocks and bonds are just two asset classes. There are other ways Gen Z can build wealth, such as investing in real estate or by becoming successful entrepreneurs. Many Gen Zers have already embarked on an entrepreneurial path as early as their teen years, which could go a long way in wealth creation.

But the pandemic has caused a housing frenzy that led to depleted inventory and inflated housing prices, making it more difficult to buy real estate – and build wealth through it. And while more prospective new businesses were formed in 2020 than ever before, almost a third of existing small businesses were wiped out by the pandemic. Altogether, the pandemic could ultimately cause Gen Z to potentially lose $10 trillion in earnings.

Within the next decade, Gen Z’s income will rise to such a point that they’ll effectively take over the economy, but their wealth could well be far behind previous generations by the time they get there.

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The Archegos meltdown will result in a $10 billion loss for global banks, JPMorgan says

Wall Street.
Big Tech recovers after a rough day Wednesday on Wall Street.

  • Global banks are expected to lose up to $10 billion from the Archegos meltdown, JPMorgan said.
  • This is 5x the normal loss level for a collateralized daily mark-to-market business, JPMorgan added.
  • It however cited three lessons the industry could take away from the implosion that has roiled the markets.
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Global banks are expected to lose up to $10 billion following the Archegos Capital Management meltdown, JPMorgan said Monday – raising its estimate from an initial $2 billion-$5 billion – with Credit Suisse Group and Nomura Holding hardest hit.

“One line of argument which could explain why the scale of losses suffered by [Credit Suisse] and Nomura was higher could be a higher level of leverage extended by these banks compared to [Goldman Sachs and Morgan Stanley], which seem to have suffered smaller losses if any,” JPMorgan analysts led by Kian Abouhossein said in a research note Monday.

JPMorgan clarified that there may also be additional considerations that determined the sizable difference between the scale of losses suffered, such as the timing of the sale of positions, among others. Nonetheless, the entire episode affects the industry overall, given that global banks could end up losing five times the normal loss level for a collateralized daily mark-to-market business.

JPMorgan cites three lessons the industry could take away from the fund’s implosion.

First, investment banks in general are in better shape today and are more focused on high-volume execution platforms.

“There is no excessive leverage in the [investment banking] or [private banking] industry,” JPMorgan said. “Although [private banking] leverage has been increasing, it is nowhere near prior peaks.”

The bank also said it sees no excessive equity-swap growth, a simple instrument all parties will benefit from.

Second, US regulatory frameworks like Basel III and the Dodd-Frank Act have improved the risk profile of investment banks. JPMorgan, however, noted that there is still weak oversight for non-bank entities, especially when it comes to family offices.

Archegos, a family office founded in 2012, did not have to disclose investments, unlike traditional hedge funds. JPMorgan also pointed to the lack of transparency when it came to equity-swap filings.

The Archegos sell-off exposed the fragility of the financial system, especially those involving lesser-known practices such as total return swaps, a derivative instrument that enabled Bill Hwang’s office not to have ownership of the underlying securities his firm was betting on and the secrecy of family offices. Typically, family offices enjoy the “private adviser exemption” provided under the Advisers Act to firms as these usually advise less than 15 clients, among other conditions.

But JPMorgan said, “filing requirements would have applied to Archegos given its sizable exposure to some US securities. However, the fact that Archegos did not file with the [Securities and Exchange Commission] can be explained by the usage of total return swaps, which seems to be the primary method through which the sizable positions were built by Archegos.”

Dan Berkovitz, a Democratic commissioner on the Commodity Futures Trading Commission, denounced family offices and their ability to skirt some oversight.

“A ‘family office’ has nothing to do with ordinary families,” he said in a statement on April 1. “Rather, it is an investment vehicle used by centimillionaires and billionaires to grow their wealth, reduce their taxes, and plan their estates.”

Third, JPMorgan said private banks, specifically those linked to Archegos, moving forward could improve their onboarding, especially with clients with backgrounds such as Hwang, who has run into trouble in the past. Private banks could also strengthen their risk management by giving less leverage to non-transparent family offices with concentrated positions and ensure checking the clients’ rehypothecation risk, among others.

Archegos in late March used borrowed money to make large bets on some stocks until Wall Street banks forced Archegos to sell over $20 billion worth of its shares after failing to meet a margin call. Hwang grew his family office’s $200 million investment to $10 billion. Reports say the former Tiger Management trader lost $8 billion in 10 days.

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Credit Suisse reins in hedge-fund limits following $4.7 billion loss tied to Archegos Capital, report says

Credit Suisse

Credit Suisse is implementing new limits on hedge-fund clients that use swap agreements after the $20 billion meltdown of Archegos Capital.

Bill Hwang’s family office, Archegos, used equity-swap agreements to take on massive leverage and make concentrated bets on a handful of stocks like ViacomCBS and Discovery.

But a sharp decline in ViacomCBS sparked a massive margin call that Archegos was unable to meet, leading to a massive liquidation that cost some banks billions of dollars in losses. Credit Suisse seems to have been most exposed to Archegos after not unwinding Hwang’s positions fast enough amid the market tumult last month. The bank said it booked a $4.7 billion write-down related to the event.

Now, to prevent a similar blowup from happening again, Credit Suisse is tightening its financing terms given to hedge funds and family offices, according to a Bloomberg report.

The bank is changing its margin requirement on swap agreements to dynamic from static, which is similar to the terms given in its prime-brokerage contracts, Bloomberg said, citing people with direct knowledge of the matter. A dynamic margin requirement would force its clients to post more collateral as a position moves down, rather than setting a fixed margin requirement at the onset of the contract.

The shift to dynamic margin requirements will increase the costs for hedge funds and family offices looking to use swap agreements, making the trades less profitable. Credit Suisse is now asking some clients to immediately switch to the news margin methodology, according to the report.

Whether Credit Suisse’s move is more indicative of a broader limitation on the leverage hedge funds and family offices can take on remains to be seen.

It would not be surprising if some banks followed suit, given that the Swiss bank wasn’t the only one that lost billions. Nomura has said it lost as much as $2 billion related to the Archegos liquidation, and JPMorgan estimated the collective losses of multiple banks could reach $10 billion.

Read more: A 29-year-old self-made billionaire breaks down how he achieved daily returns of 10% on million-dollar crypto trades, and shares how to find the best opportunities

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Credit Suisse warns of a $4.6 billion charge after Archegos blow-up – and says several top executives are leaving

Credit Suisse

Credit Suisse warned on Tuesday it expects to suffer a $4.6 billion charge to its first-quarter profits following the failure of a US-based hedge fund to meet its margin requirements.

The European lender sees an overall loss of $958 million for the first quarter after two significant crises this year. The Archegos blow-up led to major losses for the bank’s unit that services hedge funds, according to media reports. Prior to that, Credit Suisse terminated $10 billion of supply-chain finance funds linked to troubled financier Lex Greensill.

“The Board of Directors has launched two investigations, to be carried out by external parties, into the supply chain finance funds matter and into the significant US-based hedge fund matter,” the bank said in a statement.

It has now proposed a cut to its dividend and waived bonuses for the 2020 financial year. Further, Chairman Urs Rohner is giving up his “chair fee” of 1.5 million francs ($1.6 million).

Credit Suisse CEO Thomas Gottsein will remain at the bank’s helm. But the lender’s chief risk officer, Lara Warner, is departing on Tuesday. The head of its investment bank, Brian Chin, will leave by the end of April. Joachim Oechslin has been appointed as Warner’s interim replacement, while Christian Meissner will take over Chin’s role.

Insider has learnt that Paul Galietto, head of equities sales and trading, is also stepping down. He will be temporarily replaced by Anthony Abenante, global head of execution services.

Thomas Grotzer, who previously served as general counsel and an executive board member, has been appointed as the bank’s global head of compliance with immediate effect.

Archegos Capital, the highly-leveraged family office of former “Tiger cub” Bill Hwang, triggered a $20 billion forced liquidation of its holdings last month. Archegos had borrowed from a host of banks including Goldman Sachs, Credit Suisse, and Nomura using leverage – or buying stocks on credit.

The fund collapsed after bets it made in stocks such as ViacomCBS, Tencent, and Baidu tumbled below a certain level, leaving its bankers with collateral that wasn’t worth as much. Its lenders, fearing that Archegos could default on its margin obligations at any moment, exited their positions.

“The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,” Gottstein said in a statement. “In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders.”

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