Credit Suisse takes measures to reduce counterparty risk following Greensill Archegos scandals

Credit Suisse has created a new role to manage risk from lending to counterparties sensitive to market moves, such as investment banking clients.

The bank appointed Amélie Perrier to the newly created role of Head of Counterparty Market Risk, according to a Reuters report.

Memo

In an internal memo released today, the bank said: “In her new role, Amélie will focus on improving the way we measure risk for counterparties by leveraging the subject matter expertise of market risk managers, along with the techniques and infrastructure used for market risk analysis.

“She will partner closely with the Counterparty Credit Risk team within the Investment Bank to further progress how we assess the risk of our counterparties allowing for enhanced credit decision making.”

The Swiss bank has been mired in controversy in recent months due to its exposure to the collapse of supply chain finance firm Greensill Capital and then Archegos Capital Management.

Investors are facing billions of dollars in losses, with some expected to sue the bank over alleged mismanagement of funds.

The lender has also come under extra fire for its personal relationship with Sanjeev Gupta, the founder of the GFG Alliance and one of Greensill’s clients.