Credit Suisse Temporarily Replaces Managers Tied to Frozen Funds

by BLOOMBERG

Credit Suisse Group AG temporarily replaced three employees in its assets management unit after the bank was forced to freeze a $10 billion group of supply-chain finance funds it had run with financier Lex Greensill.

Michel Degen, head of asset management in Switzerland and EMEA, is being replaced in the interim by Filippo Rima, according to a person familiar with the matter. Luc Mathys, head of fixed income in the unit, and the manager of the funds were also suspended from those roles, the person said, asking not to be identified discussing internal information.

A spokesperson for Credit Suisse declined to comment on the changes, which were reported earlier by Finews.com.

Credit Suisse froze redemptions last week and said it would liquidate the strategy, a group of short-term debt funds for which Greensill had provided the assets and which had been held up as a success story. The bank took the decision after doubts emerged about the valuations of some of the assets, kicking off a chain of events that culminated in the collapse of Greensill Capital.

The Credit Suisse money pools have about $3.7 billion in cash and equivalents, leaving about two-thirds of investor money tied up in securities whose value may be uncertain.