Investors look for answers from Credit Suisse earnings after Archegos and Greensill sagas

Investors look for answers from Credit Suisse earnings after Archegos and Greensill sagas

Following the booming profit beats of its Wall Street rivals, Credit Suisse is expected to report a significant loss on Thursday as it navigates the fallout from two high-profile crises.The Swiss lender announced earlier this month that it took a $4.7 billion hit from the meltdown of U.S. family hedge fund Archegos Capital and now expects a pre-tax loss of around 900 million Swiss francs ($960.4 million) for the first quarter.The Archegos saga led to the departure of the bank's investment bank CEO and chief risk and compliance officer, and was preceded by a separate shakeup in the asset management division in the wake of the collapse of British supply chain finance firm Greensill Capital. Credit Suisse ran $10 billion in funds tied to Greensill.

Several U.S. banks which also served as prime brokers to Archegos managed to exit their trading positions after the hedge fund failed to meet margin calls, and have since produced some eye-catching first-quarter profit beats.Goldman Sachs reported an almost six-fold increase in net income while Morgan Stanley's profit jumped by 150%, despite it taking a $911 million loss from Archegos.Credit Suisse has pointed out that aside from the Archegos and Greensill sagas, it was on course