The Swiss bank is offloading its business with hedge funds to a French rival. This follows more than $5 billion in losses in the unit on Archegos' downfall.
Zurich-based Credit Suisse will refer clients in its prime brokerage arm to BNP Paribas, it said in a statement on Monday. Last week, the Swiss bank had made clear it is abandoning the business, after suffering more than $5 billion in losses on Archegos' unwind earlier this year.
«Should customers seek to benefit from the referral agreement between Credit Suisse and BNP Paribas, there will be a streamlined process in place to facilitate them obtaining prime services from BNP Paribas, under its terms,» Credit Suisse said.
Chairman António Horta Osório and CEO Thomas Gottstein plan to unveil a new bonus model next year, as part of a wider overhaul of culture, risk, and strategy. This follows outsize risk-taking both on Archegos, but also over Greensill, the now-defunct U.K. specialist finance boutique.
