Credit Suisse Group AG said Tuesday that it will cut its dividend and announced the departure of two executives.
“The Board of Directors has launched two investigations, to be carried out by external parties, into the supply chain finance funds matter and into the significant US-based hedge fund matter,” the bank said.
The U.S. hedge fund is Archegos Capital Management that recently defaulted on margin calls, which could lead to a multi-billion dollar hit for the bank. Separately, earlier in March, Credit Suisse froze $10 billion in supply-chain investment funds connected to now insolvent finance company Greensill Capital.
Investment banking head Brian Chin will leave on April 30 and be replaced the following day by Christian Meissner, the Swiss bank said. Mr. Meissner has been co-head of IWM Investment Banking Advisory and vice chairman of investment banking since last October, the Swiss bank said.
Chief Risk and Compliance Officer Lara Warner will also step down from her role on April 6.
Credit Suisse will appoint Joachim Oechslin as interim chief risk officer and member of the executive board. Thomas Grotzer– who has been general counsel and member of the executive board since 2016– will become interim global head of compliance.
The bank also said that it has reduced its ordinary dividend proposal to 0.10 Swiss francs (11 cents) gross per registered share, compared with a previous cash dividend proposal of CHF0.29 announced last February.