- Credit Suisse pays the price of Archegos
- European markets play catch up after bumper few days in the US
- Tesla, Gamestop, Cathie Wood - same old story
The fallout from the Archegos scandal continues to reveal more damage. Credit Suisse said it will take a charge of $4.7bn and now expects a first-quarter pre-tax loss of around $960m. Investment Bank chief executive Brian Chin and chief risk & compliance officer Lara Warner are falling on their swords and are set to be replaced imminently. There is a point to be made here about conflating risk (are counterparties good for the dosh?) with compliance (are counterparties terrorists?). Clearly the two are not easily combined. Indeed I cannot think why a trading or investing business would think the two are complementary in any way. Antonio Horta-Osorio will have his work cut out when he joins as chairman.
US stock markets surged to fresh record highs on Monday as boom in service sector activity last month sets up a handsome economic recovery. The Dow Jones industrial average rose over 370pts to 33,527, a fresh all-time closing high, whilst the S&P 500 rallied 1.4 per cent to set a new record close at 4,077. The Nasdaq also managed to rise 1.7 per cent but remains short of its February record. The Dax has hit a fresh record high today.