Credit Suisse Prime-Brokerage Heads to Leave After Archegos Loss

(Bloomberg) -- Credit Suisse Group AG’s prime-brokerage co-heads are leaving the bank in the wake of its $4.7 billion loss from the implosion of Archegos Capital Management, according to a company memo.

John Dabbs and Ryan Nelson will step down immediately as co-heads of the unit while assisting Credit Suisse through mid-May on an orderly transition, the bank said in the memo. Roger Anerella was appointed interim head of prime services, while Doug Crofton was made head of Americas cash with responsibility for execution and advisory sales and Stuart McGuire put in a similar role for Europe, Middle East and Africa. Credit Suisse representatives declined to comment.

The Wall Street Journal reported the departures earlier.

The Swiss lender took a 4.4 billion franc ($4.7 billion) writedown and has since parted ways with several top executives over its dealings with Archegos, weeks after the collapse of Greensill Capital. Dividends have been cut and share buybacks suspended. Analysts see further losses and potential fines. Credit Suisse’s market value has dropped by about 20% since it first raised issues with Archegos.

Read more: Credit Suisse’s New Chair Horta-Osorio Faces Toughest Crisis Yet

Credit Suisse is grappling with how much its leadership team knew and controlled client risks. It was sued by a small pension fund that alleges the bank misled investors and let “high-risk clients” including Greensill and Archegos take on too much leverage, in one of the first lawsuits since the twin debacles.

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