withdrew from re-election the head of its board’s risk committee after a protest vote by investors over the bank’s $5.5 billion loss from Archegos Capital Management.
Hours before the bank’s annual meeting Friday, it said
wouldn’t stand for reappointment. He was targeted as a symbol of Credit Suisse’s risk failures by some of its biggest investors, who had said they would vote against him.
Archegos, the family office of
wreaked havoc across Wall Street when heavily leveraged bets it made on a small collection of stocks unraveled in March, triggering huge losses at some of its lenders. Credit Suisse lent more to Archegos relative to its size than other banks and was one of the last to exit from its stock positions, The Wall Street Journal previously reported.
Last week, Credit Suisse had to raise fresh capital to shore up its balance sheet and Swiss regulators said they started enforcement proceedings over possible risk-management shortcomings. Swiss enforcement proceedings are separately under way into the bank’s handling of another now-collapsed client, Greensill Capital. The U.K. financing firm also failed in March and Credit Suisse is liquidating $10 billion in investment funds that the companies ran together.
Mr. Gottschling joined the board in 2017. He previously held the top risk job at Austria’s
and worked at McKinsey & Co. and
Write to Margot Patrick at firstname.lastname@example.org
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8