The fallout from the Archegos Capital scandal continues to impact Credit Suisse (NYSE:CS).
The Zurich, Switzerland-based bank announced several high-level staff departures and proposed a cut to its dividend as it weighs heavy losses from the Archegos Capital hedge fund’s default at the end of March.
Credit Suisse says it now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($960.4 million U.S.) after taking a charge of 4.4 billion Swiss francs because of the situation created by the Archegos Capital default.
The total cost to Credit Suisse from the Archegos Capital failure is estimated at $4.7 billion U.S.
Brian Chin, head of Credit Suisse’s investment banking division, and the lender’s Chief Risk and Compliance Officer, Lara Warner, will step down from their roles immediately, the bank said.
Last week, Credit Suisse revealed that it was expecting heavy losses in the wake of the meltdown of Archegos Capital. The bank was forced to dump a significant amount of stock to sever its ties to the troubled hedge fund.
The executive board has also waived its bonuses for the 2020 financial year, the bank announced. Additionally, at its annual general meeting on April 30, Credit Suisse says it will propose a dividend of 0.10 Swiss francs per share.
The bank has suspended its share buyback program and said it does not intend to resume share purchases until it has regained its target capital ratios and fully restored its dividend.
Credit Suisse shares were little changed in European trading on the latest news.
