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  "documentTitle": "id19 an effective approach 3 case studies",
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      "text": "If not for the Archegos and Greensill debacles, Credit Suisse would have reported the strongest quarterly financial performance in a decade.",
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      "text": "Pre-tax loss: $960 million",
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      "text": "In April 2021, some of Archego's portfolio stocks experienced a substantial dip in share price, triggering margin loan calls from lender banks. Archegos eventually defaulted on margin calls, and the lenders were forced to sell off huge chunks of its investments to recoup their money. The stock fire sale amounted to almost US$30 billion. Credit Suisse was the worst hit of several global banks, ending up with a loss of US$4.7 billion after it was stuck on negotiating the prices and could not sell off its investments in time. The impact of this was so significant that it led to the bank announcing an expected US$960 million pre-tax loss for its first quarter of 2021.",
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      "text": "More bad news soon came in the form of Archegos, where things went south when owner Bill Hwang's biggest wagers moved against him. Hwang worked for hedge fund powerhouse Tiger Management Corp. before running his own fund, Tiger Asia Management LLC (Tiger Asia) in the 2000s. In 2012, the U.S. Securities and Exchange Commission accused Tiger Asia of insider trading and manipulation in two Chinese bank stocks. Hwang allegedly received confidential information about pending share offerings from the underwriting banks and used the insider information to make US$16.7 million in illicit profits. Hwang was also banned from securities trading in Hong Kong for four years from 2014 due to market misconduct.",
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      "text": "If not for the Archegos and Greensill debacles, Credit Suisse would have reported the strongest quarterly financial performance in a decade. The Credit Suisse asset management division was left reeling from the Greensill collapse. The Archegos saga was the final nail to the coffin. Credit Suisse's investment banking head, Brian Chin, and Chief Risk and Compliance Officer Warner were dismissed from the bank, along with several other executives involved in the two cases. Warner's predecessor, Joachim Oechslin was reinstated as the Interim Chief Risk Officer for Credit Suisse.",
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      "text": "In March 2021, Greensill lost its credit insurance coverage from Tokio Marine, which refused to renew cover for the loans Greensill was making. Credit Suisse also began winding down its US$10 billion group of supply chain finance funds over valuation concerns on 5 March 2021. Greensill filed for insolvency on 8 March 2021. In relation to the collapse of Greensill, Credit Suisse recognised US$2.3 billion worth of defaulted loans in its Greensill funds.",
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      "text": "Hwang started his own family office fund, Archegos in 2013. At Archegos' peak, his wealth amounted to approximately US$30 billion. Hwang had built his stockpicking wagers and magnified his positions through Credit Suisse with huge, borrowed sums. The bank allegedly used opaque derivatives to help Archegos place big wagers on risky companies such as ViacomCBS without being required to disclose them to regulators. As Hwang's swap accounts progressively churned out cash, he accumulated additional funds to invest and increase leverage.",
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      "text": "In the aftermath of the two debacles, Credit Suisse made reductions to its bonus pool accruals, to the tune of hundreds of millions of dollars. Credit Suisse also cancelled its share buy-back programme.",
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