Credit Suisse to boost capital ahead of further Archegos hit – Reuters

Credit Suisse to boost capital ahead of further Archegos hit – Reuters

The logo of Swiss bank Credit Suisse is seen at a branch office in Zurich, Switzerland, April 14, 2021. REUTERS/Arnd WiegmannCredit Suisse (CSGN.S) will raise over $2 billion to strengthen its capital base after flagging a further hit from the collapse of U.S. investment fund Archegos and a shrinking of the prime brokerage unit responsible for the multi-billion dollar debacle.The demise of Archegos and another major client, British finance firm Greensill, have plunged Credit Suisse into crisis, triggering losses, sackings and bonus cuts at a time when rivals are revelling in bumper profit from trading and dealmaking.In a further blow for Chief Executive Thomas Gottstein, Switzerland's financial regulator has opened enforcement proceedings against the bank over how it handled the risks around Archegos and Greensill.Credit Suisse said it expects a hit of about 600 million Swiss francs ($655.81 million) for the April-June quarter after exiting most of its Archegos-related positions. A 4.4 billion hit in January-March wiped out what would have been a stellar trading period, leaving it with a slightly smaller-than-flagged pre-tax loss of 757 million francs.Its shares fell 5.7%, with analysts pointing to the further Archegos hit and dilution caused by the issuance announced on Thursday of bonds