- Paul Galietto, head of equities sales and trading at Credit Suisse, is stepping down, according to a source with knowledge of the move.
- His exit comes as the bank grapples with what could be a loss totalling in the billions tied to the blowup of Archegos Capital Management.
- Investment banking chief Brian Chin and Chief Risk Officer Lara Warner are also set to depart, Bloomberg News and the Financial Times reported.
- See more stories on Insider's business page .
The head of equities sales and trading at Credit Suisse is stepping down, according to a person with knowledge of the move, as the bank grapples with what could be a loss totalling in the billions tied to the blowup of family office Archegos Capital Management.
Equities chief Paul Galietto joined Credit Suisse in 2017 and previously worked as the global head of prime services and head of Americas equities. Galietto joined from Swiss banking rival UBS, where he served as head of equities. A Credit Suisse spokesperson declined to comment on Monday.
Investment banking chief Brian Chin is also leaving the bank, Bloomberg News reported on Monday , citing people familiar with the matter. Chief Risk Officer Lara Warner is also set to depart, the Financial Times reported later on Monday , citing people with knowledge of the move.
Credit Suisse told investors on March 29 that it expected to sustain losses due to its exposure to a "significant US-based hedge fund" unable to meet margin calls by Credit Suisse and other banks. Those losses could be "highly significant and material to our first quarter results," the firm said , and some analysts said the losses tied to Archegos could be between $3 billion and $4 billion.
The bank is still unwinding its positions in stocks linked to Archegos, like ViacomCBS and Discovery, Reuters reported on Monday , citing a source familiar with the trades. The bank declined to comment to Reuters.
The fiasco came just weeks after the bank told investors that it had to freeze $10 billion of supply-chain finance funds linked to Greensill Capital over valuation concerns. Managing directors probed Chin and Credit Suisse Chief Executive Thomas Gottstein on a company call last Monday about the firm's relationship with Archegos, Insider previously reported, with at least one person raising the Greensill ordeal.
Investors and ratings agencies have noted the bank's troubles. S&P Global Ratings, Fitch Ratings, and Moody's in the last week have all downgraded their outlooks on Credit Suisse to negative over risk magement-related concerns.
Via PakApNews