Credit Suisse has announced it will face a $4.7 billion loss following the collapse of Archegos Capital Management.

As a result of the loss, Credit Suisse said that Brian Chin, chief executive of the investment bank, and Lara Warner, chief risk and compliance officer, will both step down from their roles.

The Swiss bank said that while its financial results are still subject to finalisation, it now expects to report a pre-tax loss for the first quarter of around $959.8 million (CHF 900 million.)

Thomas Grotzer, who previously served as General Counsel and Member of the executive board of Credit Suisse, has been appointed interim global head of compliance. He will step down from his role as general counsel of Credit Suisse and also from its executive board.

"The significant loss in our Prime Services business relating to the failure of a US-based hedge fund is unacceptable,” said Thomas Gottstein, chief executive of Credit Suisse Group. “In combination with the recent issues around the supply chain finance funds, I recognise that these cases have caused significant concern amongst all our stakeholders. Together with the board of directors, we are fully committed to addressing these situations. Serious lessons will be learned. Credit Suisse remains a formidable institution with a rich history."

The board of directors also announced “adjusted proposals for the 2021 Annual General Meeting.”

“This includes the withdrawal of its proposal on discharge of the members of the board of directors and the executive board,” said the bank. “Particularly following the significant US-based hedge fund matter, the board of directors is amending its proposal on the distribution of dividends and withdrawing its proposals on variable compensation of the Executive Board.”

Last week it was reported that a number of top banks, including Credit Suisse, could face investigations from UK and US regulators over a fire sale of Archegos assets worth around $20 billion following the hedge fund’s collapse.

The US Securities Exchange Commission and Wall Street regulatory body Finra, have reportedly requested information from Goldman Sachs, Wells Fargo, UBS, Morgan Stanley, Nomura, and Credit Suisse about a meeting they had with Archegos founder Bill Hwang last Thursday.

The Financial Conduct Authority (FCA) has also reportedly contacted the six banks.

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