After Credit Suisse lost $5.5 billion due to the collapse of Archegos Capital Management, many questioned the bank's risk management processes. While Credit Suisse allowed Archegos to take money off the table and reduce the cash backing up its investments due to good short-term returns, the bank's competitors saw the risky and concentrated portfolio of the investment firm and required that it put up more money.
Even though an April 2020 audit found risk management deficiencies that likely contributed to the Archegos losses, the issues were not fixed in time to save the bank from billions in losses.
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