Credit Suisse’s prime-brokerage co-heads are reportedly leaving the firm after the bank took a $4.7bn hit from the collapse of US-based hedge fund Archegos Capital.
The bank in a memo said that its prime-brokerage co-heads John Dabbs and Ryan Nelson will resign from their roles immediately and assist the firm through mid-May for an orderly transition.
Credit Sussie has named Roger Anerella as the interim head of prime services and Doug Crofton as head of Americas cash in charge of execution and advisory sales.
It has also appointed Stuart McGuire in a similar role for Europe, Middle East and Africa.
The latest departures follow the exit of investment bank CEO Brian Chin and chief risk and compliance officer Lara Warner from the firm earlier this month.
Several other employees working in equities and risk management also left the bank in Archegos fallout.
Following the development, the bank suspended its CHF1.5bn share buyback programme and decided to cut its dividend by two-thirds to CHF0.10 per share.
It also nixed bonus for its top executives in a bid to protect the capital.
The bank has also launched an internal investigation into the scandal, according to a report by WSJ.
The focus of the probe is said to be on the prime brokerage unit, which handled the relationship with Archegos and let the investor pile up significant leveraged positions in individual stocks.
The Swiss lender was struck by the explosion of Archegos just over a month after it was hit by the collapse of Greensill Capital, for which it was a key source of funding.
Last month, reports emerged that the bank is investigating the role of its executive board members, including Gottstein, as part of its probe related to the Greensill fund scandal.