Ralf Hafner, a former chief risk officer at Credit Suisse Group's investment bank, is leaving the company after the bank's investigation into its involvement in the Archegos Capital Management disaster blamed employees, saying they did not act on warning signs.
Hafner will leave Credit Suisse at the end of next month, according to a person briefed on the situation. According to his LinkedIn profile, Hafner joined Credit Suisse last year after working at Goldman SachsThe group has served for more than 20 years.
A report by law firm Paul,Weiss,Rifkind,Wharton&Garrison LLP concluded that while the bank's system identified risks, they were "systematically ignored" by an institutional service department that was "lazy to risk". The report did not mention the individual by name, saying that the chief risk officer of the investment bank did not appear to escalate the problem with Archegos to his boss.
The risk director of the investment bank played the same role for the international business, which may have distracted Archegos before he defaulted, the report said.
The collapse of Archegos in March cost Credit Suisse $5.5 billion, far more than any other bank, forcing it to cut dividends, suspend share buybacks and raise capital.
Hafner did not immediately respond to an email seeking comment. Earlier Thursday, the Wall Street Journal reported that Hafner was leaving.