Credit Suisse cuts bonuses in wake of Archegos Capital losses

Credit Suisse Group AG has cut bonuses for its staff by hundreds of millions of dollars after it lost US$4.7 billion from the collapse of hedge fund Archegos Capital, the Financial Times reported on Monday.

The Swiss bank’s pre-tax income for the first quarter was expected to be just over US$3.7 billion, with about US$600 million achieved through reductions to staff bonus and other one-off items, the newspaper said, citing people briefed on the bank’s performance.

Credit Suisse did not immediately respond to a Reuters request for comment.

The magnitude of bonus cuts will be revealed with the company’s quarterly results next week, the FT report added.

Switzerland’s second-biggest bank has been reeling from its exposure to the collapse first of Greensill Capital and then Archegos Capital Management within the course of a month.