RTTNews | Apr 5, 2021 09:45PM EDT

21:45 Monday, April 5, 2021 (RTTNews.com) - Credit Suisse sold about $2.3 billion worth of stocks tied to the Archegos Capital. The Zurich-based lender will change its executives after the bank was affected by the collapse of Archegos Capital Management, Bloomberg reported citing people familiar with the matter.

Archegos Capital Management is a family office capital management firm run by Bill Hwang.

Credit Suisse's investment-bank chief Brian Chin is set to leave, with his exit announced as soon as Tuesday, the report said.

The report also said Zurich-based lender is discussing replacing Chief Risk Officer Lara Warner while sparing Chief Executive Officer Thomas Gottstein as they tally Archegos-related losses.

Paul Galietto, head of equities sales and trading, has stepped down effective immediately, but he will stay through April to assist in the transition, the report said.

Anthony Abenante will reportedly replace Galietto on an interim basis while continuing in his current role as global head of execution services.

On March 29, Credit Suisse reportedly disclosed that it anticipated significant losses in connection with positions linked to Archegos Capital Management after Archegos failed to meet margin calls the prior week, forcing the liquidation of more than $20 billion in holdings.

On 26 March Archegos defaulted on margin calls from several global investment banks, including Credit Suisse and Nomura Holdings, as well as Goldman Sachs and Morgan Stanley.

The fund had large, concentrated positions in ViacomCBS, Baidu, and other companies, and the firm's use of total return swaps had helped to hide its high exposure from lending banks. Its derivative contracts "exposed the firm to severe losses when the trades went bad." The Wall Street Journal had reported that Hwang lost $8 billion in ten days.

Read the original article on RTTNews ( https://www.rttnews.com/3182537/credit-suisse-sells-about-2-3-bln-of-stocks-tied-to-archegos-executives-to-step-down-report.aspx)

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