Credit Suisse faces regulatory probes
Because of legal matters, the bank’s executives earned 12% less in total aggregate compensation in 2020
Stocks impacted: Credit Suisse Group AG (CSGN)
In its annual report, Credit Suisse said several regulatory investigations and actions have been initiated (or are being considered) over its dealings with collapsed supply chain finance firm Greensill Capital. According to the lender, Swiss regulator FINMA was one watchdog looking into the matter and was reviewing it in relation to its "Pillar 2" buffer. As a reminder, "Pillar 2" is a pool of capital banks have to ensure they can withstand all risks. The bank warned in the report that the ultimate cost to the group of resolving these matters “may be material to its operating results." The bank’s annual report also showed that executives earned 12% less in total aggregate compensation in 2020, as bonuses were hit by legal matters and other issues including a write-down in its asset management business. Credit Suisse expects to announce its financial results for the first quarter of 2021 on April 22, 2021.
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