After the Greensill and Archegos crisis, Credit Suisse appoints a new compliance director

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Credit Suisse Group Update

Five months after the double crisis of Archegos Capital and Greensill Capital, Credit Suisse fired at least seven senior executives, Credit Suisse appointed a new chief compliance officer.

Rafael Lorenzo, who has been in charge of the bank’s internal audit department since 2017, will succeed Lara Warner, the head of global risk and compliance at Credit Suisse, until A wave of top turnovers In April. Since Warner was forced to leave, Thomas Grotzer, the general counsel of the bank’s Swiss business, has temporarily assumed the position.

Permanent appointment is the earliest New Chairman Antonio Horta-Osorio, He joined the board of directors in April and vowed to conduct an urgent review of the bank’s risk management, strategy and culture. Credit Suisse also hired Axel Lehmann, the former chief operating officer of UBS, to lead the board’s risk committee last month as part of strengthening its defenses after scandals.

Credit Suisse’s reputation for risk management was hit this year by the double crisis surrounding the professional financial group Greensill Capital and the family office Archegos. These two incidents caused the Swiss group to liquidate a US$10 billion investment fund and lose US$5.5 billion, the worst trading loss in its 165-year history.

According to Credit Suisse, Lorenzo will join the board of directors on October 1, and he played a “key role” in reviewing the bank’s failure to handle the Archegos and Greensill incidents.

The bank added that his “leadership, experience and deep understanding of banking processes and challenges in the third line of defense will be the key to leading future compliance functions”.

A sort of Damn report The Archegos loss, published in July by the law firm Paul Weiss, described the “fundamental failure of management and control” of the Credit Suisse Investment Bank and “a weak attitude towards risk”.

The subsequent general cleaning also led Andreas Gottschling to resign as head of the Credit Suisse Risk Committee, after several major shareholders said they would vote against his re-election. TSB Bank Executive Chairman Richard Meddings (Richard Meddings) has been the interim head of the Credit Suisse Risk Committee since April.

In July of this year, Credit Suisse announced that it had hired David Wildermuth, former deputy risk officer of Goldman Sachs, as its chief risk officer. Wildermuth will move from New York to Zurich in February 2022 to take up a new position.

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