Credit Suisse Weighs Big Cut According To Swiss Fund Data


The Downfall of Credit Suisse: What Went Wrong?

Credit Suisse, once a leading financial institution, has been struggling to keep up with its competitors. The bank has been in the news for all the wrong reasons, from losses in its prime brokerage division to the Greensill Capital scandal. In this article, we will take a closer look at what went wrong for Credit Suisse.

The Greensill Capital Scandal

The Greensill Capital scandal was one of the main reasons for Credit Suisse’s downfall. The bank was heavily invested in the supply chain finance firm, which went bankrupt in March 2021. Credit Suisse’s reputation took a hit when it was revealed that the bank had continued to invest in Greensill Capital even after the firm lost its credit insurance. The scandal also raised questions about the bank’s risk management practices.

The Losses in the Prime Brokerage Division

Credit Suisse’s prime brokerage division, which caters to hedge funds, suffered huge losses in 2021. The bank had to freeze $10 billion in funds after the collapse of Archegos Capital Management, a family office run by Bill Hwang. The incident raised concerns about the bank’s risk management practices and its ability to manage its exposure to risky investments.

The Departure of Key Executives

Credit Suisse has seen a series of high-profile departures in recent years. The bank’s CEO, Tidjane Thiam, resigned in 2020 following a spying scandal. His successor, Thomas Gottstein, has been struggling to turn the bank’s fortunes around. The departure of key executives has raised questions about the bank’s ability to retain top talent and maintain stability in its leadership.


In conclusion, Credit Suisse’s downfall can be attributed to a combination of factors, including the Greensill Capital scandal, losses in the prime brokerage division, and the departure of key executives. The bank’s reputation has taken a hit, and it will take time for it to regain the trust of its clients and investors. As a leading financial institution, Credit Suisse needs to take steps to improve its risk management practices and address the issues that led to its downfall.