The Wall Street Journal quoted people familiar with the matter as saying that Credit Suisse will disclose details related to the Archegos Capital explosion as soon as Thursday, that is, tomorrow.
The detailed report, which is expected to be disclosed when Credit Suisse publishes its second-quarter earnings, focuses on problems with banks' risk management departments, perceived misjudgments and risks of concentrated positions, as well as specific losses from positions, according to people familiar with the matter.
Wall Street previously mentioned that in March this year, Archegos Capital, a family investment fund run by South Korean hedge fund manager Bill Hwang, recorded the largest one-day loss in human history, and led to the bloodbath of many Chinese stocks, such as Tencent Music, iQIYI, Inc., Vipshop Holdings Limited, and Baidu, Inc., and huge shocks in stock prices.
According to the Financial Times, Credit Suisse, which works with Archegos, lost a huge $5.4 billion in the debacle, compared with the fact that Credit Suisse made only $17.5 million from the fund in the past year.
With the collapse of Archegos Capital and the bankruptcy of Greensill Capital, another important client of Credit Suisse, the well-known financial group accumulated more than $20 billion of exposure and was once in crisis.
Credit Suisse has since sacked the chief risk officer, the head of investment banking and other important positions and raised 2 billion dollars from investors to shore up its balance sheet.
Credit Suisse's new chairman, Ant ó nio Horta-Os ó rio, promised to improve risk management, review the group's strategy and culture, and focus Credit Suisse's business on global wealth management for the rich.
Credit Suisse, which was restructured in 2002, 2004 and 2006, was one of the least affected banks in the 2008 subprime crisis, but then began to cut investment, cut jobs and cut operating costs. After the explosion, some bank analysts expected the financial group to further cut back on its investment business.
As of yesterday's close, credit suisse closed down 0.49% at $10.23.
