[Translated by/Observer.com Zhou Yuanfang] After the hedge fund Archegos managed by Korean Bill Huang broke its position, the second domino appeared.

[Compiled/Observer Network Zhou Yuanfang]

After the hedge fund Archegos managed by Korean Bill Huang broke its position, the second domino appeared.

Screenshot of Wall Street Journal report

Credit Suisse announced on its official website on April 6 that the group's chief risk and compliance officer Lara Warner and investment banking director Brian Chin have proposed to resign.

So far, the two are the highest-level executives to leave after Credit Suisse's crisis. Previously, five other cadres, including Eric Varvel, head of asset management, and Paul Galietto, head of stock trading, have resigned.

In another latest transaction report, Credit Suisse said that the bank's loss of positions in the family fund Archegos operated by Bill Huang will cause the bank to lose about US$4.7 billion (about RMB 30.7 billion), slightly higher than previous estimates. This will cost the bank about 900 million Swiss francs (about 6.28 billion yuan) in the first quarter. The

event also caused Credit Suisse to suspend its CHF 1.5 billion share buyback program and cut its dividend by two-thirds to CHF 0.1 per share. Urs Rohner, the retired chairman, announced that he would give up his CHF 1.5 million remuneration this year and cancel the bonus for UBS executives this year.

Credit Suisse's board of directors will set up a crisis handling team and hire external institutions to conduct two investigations into the above serious losses: one is aimed at the supply chain finance fund, and the other is aimed at major issues in the US hedge funds.

Credit Suisse Group CEO Thomas Gottstein said, "It is unacceptable to have suffered significant losses in our bulk services business due to the bankruptcy of a US hedge fund... coupled with the recent supply chain financial fund problems, which has caused serious concerns among all our stakeholders. ... Credit Suisse remains a powerful institution with a rich history."

In the past few years, the crisis has been encountered by Credit Suisse. Last year alone, the two major incidents of the Luckin coffee crisis in China and the suspected fraud of German "Alipay" Wirecard have involved Credit Suisse.

In addition, the company also disclosed the incident of losing $680 million during the US subprime mortgage crisis, the incident of having financial transactions between Swiss federal prosecutors engaged in cocaine smuggling, etc.

Nir Kossovsky, CEO of Steel City Re, a corporate goodwill insurance company, said that a series of credit crises before Credit Suisse was accidental? No, Archegos and Greensill funds are like a combination of punches, completely shattering this illusion. Almost all of this happens can be attributed to outdated knowledge, self-willed authority, and the lack of cross-domain information collection and analysis capabilities.

Bryan Chen (left) and Laura Warner

Lara Warner, the chief risk and compliance officer who is about to leave this time, comes from the famous Lehman Brothers (Lehman Brothers). In 2002, he joined Credit Suisse Group as an analyst at Lehman Brothers, and later promoted to chief financial officer, and then held compliance and risk management positions.

Brian Chin serves as head of investment banking, which has just integrated Credit Suisse Group's previous global markets, investment banking and capital markets, as well as the Asia-Pacific market business.

Laura Warner's position will be taken over by Joachim Oechslin, chief of staff of UBS CEO Oechslin, and Christian Meissner, former Bank of America executive and former vice chairman of investment banking business who just joined Credit Suisse in October this year, will take over Brian Chen's position.

Archegos' risk of liquidation incident has not been fully released because at least six banks had to sell a large number of stocks, positions, and Credit Suisse was just one of them.

Moreover, according to Bloomberg, citing people familiar with the matter, Credit Suisse's closing action has not yet ended. On Monday, the bank posted a large number of sell orders from three related listed companies, including 34 million ViacomCBS, 14 million Vipshop, and 11 million Farfetch, but the transaction price is unknown.Based on the current prices of the above three stocks, the total amount involved is as high as about US$2.3 billion.

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