Credit Suisse Group AG reported a $4.7 billion hit from the meltdown of Archegos Capital Management, slashed its dividend and said its investment banking and risk chiefs would leave the bank.
The Swiss lender has been the hardest hit by the collapse late last month of Archegos, a U.S. family investment firm, suffering a major loss in its unit that services hedge funds. The Archegos crisis emerged just weeks after Credit Suisse froze $10 billion in investment funds connected to now-insolvent finance company Greensill Capital.
Chief Executive Thomas Gottstein will stay in his job, but his chief risk officer, Lara Warner, is leaving the bank Tuesday and head of investment banking Brian Chin will depart at the end of April.
Christian Meissner, a Bank of America Corp. and Goldman Sachs Group Inc. veteran, will become head of the investment bank, Credit Suisse said. It hired Mr. Meissner last year to lead a new unit connecting its wealthiest clients to its investment bank. It put its former chief risk officer, Joachim Oechslin, temporarily back in that job and named a temporary head of compliance.
The double blow of Archegos and Greensill represents the bank’s biggest test in years and comes at a time of leadership transition. Mr. Gottstein took over a year ago after his predecessor, Tidjane Thiam, was forced out after the bank was caught spying on a recently departed executive.