- July 29, 2021
- Posted by: Stratford Team
- Category: Business
ZURICH, July 29 (Reuters) – A “lackadaisical” attitude towards risk and “a lack of accountability” were to blame for Credit Suisse’s (CSGN.S) $5.5 billion loss on investment fund Archegos, according to a review published on Thursday, as the bank reported a near-80% fall in second-quarter profit.
The collapse of Archegos rocked Wall Street in March as its highly leveraged stock bets went sour, sending banks scrambling for the exit. In a $10 billion bloodbath, Credit Suisse was the biggest loser, a devastating double whammy for a bank already reeling from the insolvency of a key associate, Greensill Capital.
Archegos is still hitting Credit Suisse’s bottom line. Net profit of 253 million Swiss francs ($278.45 million) missed average forecasts for 334 million Swiss francs as it absorbed an additional $653 million loss from the fund’s collapse and amid a general slump in trading.
In a review unveiled along with the results on Thursday, law firm Paul Weiss,…