Credit Suisse Group has created a new senior executive position to track the trading positions of its largest customers after the bank lost $4.7 billion in the aftermath of the collapse of Archegos Capital Management.
Credit Suisse named bank veteran Amélie Perrier to the new post of head of counterparty market risk, according to a staff memo seen by Compliance Week.
Perrier’s job will be to “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,” the memo stated. She will work closely with the bank’s counterparty credit risk team “to further progress how we assess the risk of our counterparties allowing for enhanced credit decision making.”
Perrier will report directly to David Krauss, who is the bank’s U.S. chief risk officer and global head of market risk. She will have an additional reporting line to Ralf Hafner, chief risk officer for Investment Bank. Perrier will also become a member of the Global Market Risk Management Committee, the memo said.
Perrier was previously the bank’s managing director - global head of equity market risk, a position she held since August 2018, according to her LinkedIn profile. She has been with Credit Suisse nearly five years, previously serving as head of equity market risk for Asia. She also worked in risk and compliance at ANZ (Australia and New Zealand Banking Group) and as director of exotic equity derivatives trading at Citi.
Archegos, a hedge fund managed by billionaire Bill Hwang, collapsed when risky bets on ViacomCBS and several other stocks soured. Credit Suisse and Japan-based Nomura Holdings, which had provided credit that made Hwang’s bets possible, lost billions when they had to sell off stocks at a loss.
Credit Suisse CEO Thomas Gottstein later called the losses “unacceptable” in a conference call regarding the bank’s first-quarter results.
Chief Risk and Compliance Officer Lara Warner stepped down in April, and the bank made a number of other moves to replace senior risk and compliance managers.
Credit Suisse’s compliance overhaul continued Monday with the announcement longtime senior executive Floriana Scarlato will immediately step down from her position as head of compliance at Swiss Universal Bank (SUB), as well as from her positions on SUB’s management committee and on the executive board of Credit Suisse. Scarlato held various risk and compliance positions with Credit Suisse since 2005.
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