Credit Suisse Takes $4.7B Hit on Archegos Meltdown

Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by bidirectional on Tuesday April 06, 2021 @10:25AM (#26712126)

Yes, of course they have. How does a company losing a sum equal to nearly 2 years of profit not have the most dramatic impact on senior officials at said company? Where do you think the executive bonuses and value of shares (not just options, senior officials will already be vested) come from?

Beyond those losses, the head of investment banking and the head of risk were both fired yesterday.

The real problem is lower down the ranks, where someone on the trading floor can take outsized risk to boost their potential bonus, where worst case scenario they're fired without much ceremony and get another job somewhere else.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by Spinnaker_ on Tuesday April 06, 2021 @11:21AM (#26712921)

It's called the Bob Rubin trade. For years you stack up risk and profit immensely from it ($125 million). When things eventually blow up you simply... step away.

So sure, people were fired, but it's not like they are giving back all the money they made.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by whatshisface on Tuesday April 06, 2021 @12:26PM (#26713861)

Principal-Agent problem, we meet again.

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