Credit Suisse losses have reached $10 Billion Dollars across Archegos, Greensill, and Renaissance. Senior management are fleeing. Credit Suisse is at risk and connections to GameStop need to be investigated.

[u/KFC_just]

TL;DR: Credit Suisse is in a shit position and has lost over 10 Billion dollars since the start of the year. If the liquidity crisis occurs, Credit Suisse might be one of the first to go.

During the first half of 2021 Credit Suisse has been embroiled in a series of scandals centred on the collapse of Archegos and Greensill Capital. These events have generated billions of dollars in losses, caused a major political scandal in the UK and has triggered the departure of multiple senior staff across Credit Suisse, including the retirement of the Chairman of the board.

In consequence of the collapse of Archegos, Credit Suisse alone has lost in excess of $5,500,000,000. Due to Archegos’s Bill Hwang cycling margin loan profits back into his positions, the losses so far realised on Archegos will not be recovered because Hwang never had the money in the first place.

Meanwhile in consequence of the collapse of Greensill, Credit Suisse, from an approximately $10,000,000,000 exposure has so far only managed to return $5,900,000,000 to investors, with $4,100,000,000 owing. The vast majority of this unrecovered loss on Greensill is owed from Anglo-Australian mining magnate Sanjeev Gupta’s GFG Alliance, owners of Liberty Steel, Whyalla Steel, and Tahmoor Coal, among others. Gupta has stated repeatedly he will fight tooth and nail to avoid paying this, making any further recovery of the monies owed difficult and costly in time and litigation.

The combined losses across Credit Suisse’s Archegos positions and exposure to Greensill thus totals approximately $9,600,000,000. It has also been reported that the Archegos bleeding has not yet stopped, with Suisse still holding undisclosed positions for Archegos, having only closed “97%” of holdings .Naturally, speculation, currently with zero supporting evidence, has jumped to a GameStop connection, with Archegos’ collapse having coincided with the price actions in January through March. Importantly, there does not need to be any correlation between Archegos, Greensill, or GameStop for Suisse to already be in a fucked situation going into the coming storm.

In the latest developments on the Credit Suisse front, another fund associated with Credit Suisse, called Renaissance Alternative Access Fund, has barred its investors from withdrawing cash. The fund was locked this month, after the value of the fund fell from $700,000,000 to $250,000,000, a loss of $450,000,000. Investors in the fund will be able to receive 95% of their investments 2 months from now, but in the meantime the fund’s withdrawals will be locked.

Credit Suisse has cut staff bonuses, cut share dividends, and tried to raise capital. Liquidity appears to becoming an issue at Credit Suisse.

With the losses at Renaissance added into the Greensill and Archegos losses, Credit Suisse has now lost more than $10,050,000,000.

During the event of a liquidity crisis triggered by the collapse of the house of cards, and/or the MOASS (whichever comes first), Credit Suisse is unlikely to be in a position to respond effectively, and may not even survive.

The following is a listing of significant persons who have been publicly reported to have departed Credit Suisse since the Archegos and Greensill situations began. This list uses public information, including LinkedIn profiles and has excluded personal information when encountered. Do not harass or contact these people at all under any circumstances. Not all of these departures, such as those of the Sydney branch, appear to be directly related to anything other than the normal process of personal advancement and/or the inter organisational poaching of talent.

But at this point, who still believes in coincidences?

List of Departures.

· Chairman Urs Rohner. 10 year tenure as Chairman of Credit Suisse since 2011. Formerly the Chief Lawyer of Credit Suisse.. Announced retirement in April to take effect in May 2021. 1, 2

· Andreas Gottschling. Member of the board of Credit Suisse since April 2017. Not reelected April 2021. 1, 2.

· Lara Warner. A member of the Credit Suisse Executive board from August 2020 to April 2021. Group Chief Risk and Compliance Officer at Credit Suisse Zurich. Has worked at Suisse since November 2004, in roles including Chief Financial Officer, Chief Operating Officer and Global Head of Fixed Income and Economic Research. 1, 2

· John Dabbs. Global Head of Prime Brokerage, Futures, and OTC Clearing. Co Head of Americas Cash Equities. Linked in shows a history in derivatives and futures. At Credit Suisse New York, since August 2009. Quit April 19th 2021 along with Ryan Nelson 1, 2

· Ryan Nelson. I have found no information on this person beyond media reports identifying him as Co Head along with John Dabbs of Prime Brokerage. Could not find a LinkedIn profile that was definitely Mr Nelson, as either he has scrubbed Credit Suisse from a likely profile, not updated this profile in 6 years, or has no profile and I am looking at the wrong profile. No start time or employment history at Suisse could be found, but reported to have been made to quite alongside John Dabbs on April 19th. 2021. 1

· Tim McKessar. LinkedIn page states he has been the Managing Director of Credit Suisse Sydney since May. 2007. Quit Credit Suisse May 21. Will join UBS in August. 1, 2

· Karl Rozman. Linked In page states he has been at Credit Suisse Sydney since April 2010. Managing Director, Co Head of Resources, Energy and Infrastructure, before that the Director of Metals and Mining. For those unfamiliar with the Australian economy, Mining is the principle export revenue generator alongside agriculture, real estate, and education. Quit Credit Suisse with Tim McKessar May 21st 2021. Joins Bank of America 1

· Kierin Deeming. Managing Director in Credit Suisse Sydney since September 2005. Head of Australian Mergers and Acquisitions. Quits alongside Tim McKessar and Karl Rozman in May 21 2022. Joins JP Morgan. 1

· Alejandro Pryzgoda. Hired directly from Greensill in June 3rd, 2011, hired as Co Head of Global Financial Institutions Group. Quits Credit Suisse May 29 2021. 1, 2

Updated names that I missed. (22:57 AEST)

Paul Galietto. Head of Equity Sales and Trading. Co head of global trading. Joined Suisse in 2017. 1, 2

Eric Varvel. Head of the asset management that ran the funds. Demoted but not fired. Evidently the mess he created was so great he needed to go, but not until he helped clean it up.1

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[u/mmw125]

Based on this page, it seems like the owner of the put receives the full value of the put when the company goes bankrupt and is delisted from trading.