(Bloomberg) -- Credit Suisse Group AG could see further impact from the Archegos Capital Management blowup this quarter as it winds down residual positions.
While the Swiss bank has substantially reduced its exposure, the sale of about $2.3 billion worth of stocks via block trades this week didn't affect the first-quarter figures, according to a person familiar with the matter. Any further impact from that and other swings in remaining positions would be booked in the second quarter, the person said, asking for anonymity to discuss internal information.
A spokesperson for Credit Suisse declined to comment.
Credit Suisse on Tuesday said it would book a 4.4 billion franc ($4.7 billion) writedown tied to the implosion of Archegos and replace more than half a dozen executives in response to the firm's worst trading debacle in over a decade. The charge puts the bank on track for its second straight net loss and prompted it to cut the dividend, suspend share buybacks and scrap bonuses for top management.
The bank's latest trades came more than a week after several rivals dumped their shares to skirt losses. Credit Suisse hit the market with block trades tied to ViacomCBS Inc., Vipshop Holdings Ltd. and Farfetch Ltd., a person with knowledge of the matter said. The stocks traded substantially below where they were last month before Bill Hwang's family office imploded.
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