A Swiss parliamentary committee will reportedly probe Credit Suisse’s multi-billion-dollar losses linked to collapse of Archegos and Greensill.
The committee has set hearings this week to look into the troubles at the country’s second biggest lender, Reuters reported citing a report published by SonntagsZeitung.
“It’s the politicians’ turn on the Credit Suisse issue, Prisca Birrer-Heimo, a Social Democrat member of the lower house’s economic affairs committee told SonntagsZeitung.
According to Birrer-Heimo, the question was ‘whether and how the regulation of the big banks needs to be tightened’.
Credit Suisse did not comment on the report.
The Swiss bank reported a net loss in Q1 2021 driven by the Archegos losses that offset growth across wealth management and investment banking.
Last month, reports suggested that the bank is looking to raise $1.9bn from investors in a bid to rebuild its balance sheet in the aftermath of a $4.7bn hit from the collapse of Archegos Capital.
It also decided to cut down lending in the hedge fund arm by a third to mitigate losses.
The same month, following Archegos fallout, Credit Suisse said its prime-brokerage co-heads John Dabbs and Ryan Nelson, among other executives, will depart the firm.
Meanwhile, Credit Suisse is also facing enforcement proceedings by Swiss financial regulator Finma in connection to the Archegos collapse.
In March, the Swiss watchdog announced a probe over the bank’s Greensill losses and the corresponding supply chain finance fund.
Finma is investigating issues of risk management related to both cases.