Credit Suisse slashes bonuses, citing Archegos collapse
The magnitude of bonus cuts will be revealed with the company’s quarterly results next week
Stocks impacted: Credit Suisse (CSGN)
Credit Suisse slashed the amount of money set aside for bonuses by hundreds of millions of dollars after it lost $4.7 billion from the collapse of hedge fund Archegos Capital. The magnitude of bonus cuts will be revealed with the company’s quarterly results next week. Switzerland’s second-biggest bank could set aside more in the remainder of the year to make up for the cuts. The Archegos collapse pushed the firm into a $975-million pretax loss and prompting a management shakeup. Last week, Credit Suisse Group said that it will cut its dividend and announced the departure of two executives. The bank has reduced its ordinary dividend proposal to 0.10 Swiss francs (11 cents) gross per registered share, compared with a previous cash dividend proposal of CHF0.29.
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