, Columnists
Credit Suisse Bet So Much on Archegos for So Little
The hedge fund debacle that cost the bank $5.5 billion exposed a singularly lackadaisical and reckless culture.
A recurring theme in the gripping and extraordinarily detailed report about Credit Suisse Group AG’s $5.5 billion loss at the hands of Archegos Capital Management is how easily it could have been avoided.
Epic financial meltdowns are not a new phenomenon on Wall Street, of course. Long-Term Capital Management LP, Lehman Brothers Holdings Inc. and other firms populate a who’s-who list of fast-moving, elite money managers and brokers that courted disaster. Greed, shoddy management and weak risk controls are common culprits behind the nosedives.