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| - Swiss banking giant Credit Suisse, rocked by the bankruptcies of British financial firm Greensill and US hedge fund Archegos, suffered a first-quarter net loss of 252 million Swiss francs, it reported Thursday. The bank, which had recorded a net profit of 1.3 billion francs a year earlier, booked a charge of 4.4 billion Swiss francs (3.9 billion euros, $4.7 billion) to cover damage related to Archegos. The bank said it expects additional losses of 600 million francs on this fund in the second quarter. "Our results for the first quarter of 2021 have been significantly impacted by a CHF 4.4 bn charge related to a US-based hedge fund," Credit Suisse chief executive Thomas Gottstein said in Thursday's statement. "The loss we report this quarter, because of this matter, is unacceptable." But he added: "We have taken significant steps to address this situation as well as the supply chain finance funds matter." Meanwhile in London, administrators overseeing Greensill's activities said Thursday that its Australian parent company group had entered liquidation. Creditors including Credit Suisse and the Association of German Banks met early in the day and "resolved to place the company into liquidation", a statement from admininstrators Grant Thornton said. The administrator will now wind down Greensill activities and attempt to sell off parts of the business. Switzerland's second-largest bank was heavily invested in Greensill, a firm specialised in short-term corporate loans via a complex and opaque business model, and was forced to suspend four funds after the firm declared insolvency last month. And a sudden share selloff by Archegos Capital Management triggered turmoil on financial markets that hit Credit Suisse particularly hard. The Wall Street Journal reported late Wednesday that Credit Suisse racked up more than $20 billion in exposure to Archegos-related investments, and said the Swiss bank's executives were only told days before the US hedge fund's implosion. Gottstein emphasised that the bank's underlying performance was strong in the first three months of the year owing to good results in Switzerland, growth in the Asia Pacific region, and returns from its investment banking operations. That "makes it all the more important that we quickly and decisively resolve the issues we are currently dealing with," he noted. noo/wdb-wai/lth
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