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Credit Suisse unloads US$2.3 billion of stocks linked to Bill Hwang’s Archegos as bank chief departs in management shake-up
- Swiss bank hits the market with block trades tied to ViacomCBS, Vipshop Holdings and Farfetch that totalled more than US$2 billion at current prices
- Investment banking chief Chin is set to leave, with his exit to be announced as soon as Tuesday, according to people familiar
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Credit Suisse unloaded about US$2.3 billion worth of stocks tied to the Archegos Capital Management blowup more than a week after some rivals dumped their shares and skirted losses.
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The Swiss bank hit the market with block trades tied to ViacomCBS, Vipshop Holdings and Farfetch, a person with knowledge of the matter said. The stocks traded substantially below where they were last month before Bill Hwang’s family office imploded.
The offering on Monday was large, about 34 million shares in ViacomCBS, 14 million shares of Vipshop and 11 million shares of Farfetch, but this is still a fraction of the size traded by banks at the end of March. Shares in the three companies declined in post-market trading, as did US-listed shares of Credit Suisse.
The Zurich-based firm has yet to provide investors with an update on the extent of the hit it faces from its relationship with Archegos, but it could run into the billions of dollars, according to people with knowledge of the matter.
Investment-bank chief Brian Chin is set to leave, with his exit announced by the Swiss lender as soon as Tuesday. Leaders are also discussing removing chief risk officer Lara Warner, while sparing Chief Executive Officer Thomas Gottstein. Warner would also replaced, Reuters reported separately.
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