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Credit Suisse Group published the report based on the independent external investigation into Archegos Capital Management, which was commissioned by the Board of Directors and supervised by a special committee of the Board. Over the past months, at the direction of the Board of Directors, Paul, Weiss, Rifkind, Wharton & Garrison LLP and its expert advisors conducted a comprehensive review of Credit Suisse's relationship with Archegos following the US hedge fund's default on March 25, 2021. The review consisted of more than 80 interviews with current and former Credit Suisse employees as well as the collection of more than 10 million documents and other data. Among some of the key conclusions, the investigation found a failure to effectively manage risk in the Investment Bank's Prime Services business by both the first and second lines of defense as well as a lack of risk escalation. In the same business, it also found a failure to control limit excesses across both lines of defense as a result of an insufficient discharge of supervisory responsibilities in the Investment Bank and in Risk, as well as a lack of prioritization of risk mitigation and enhancement measures. However, the investigation also found that this was not a situation where the business and risk personnel engaged in fraudulent or illegal conduct or acted with ill intent. Nor was it one where the architecture of risk controls and processes was lacking, or the existing risk systems failed to operate sufficiently to identify critical risks and related concerns. Under the leadership of the Tactical Crisis Committee of the Board - which consists of the Chairman of the Board, the Chair of the Audit Committee, the Chair of the Risk Committee, and the Chair of the Conduct and Financial Crime Control Committee - and in close collaboration with the Group Chief Executive Officer and selected members of senior management, including the ad interim Chief Risk Officer, the Chief Financial Officer, the General Counsel, the ad interim Chief Compliance Officer, the new CEO of the Investment Bank Division, and the Head Internal Audit, the bank has already implemented a series of key recommendations. These implementation steps have included several changes in senior leadership at the Investment Bank, including in the Prime Services business, and initiating the recruitment of additional resources for the Risk function. Furthermore, over the past months, a review of all large group-wide exposures and a revision of limit excess controls and escalation requirements has been conducted. A number of risk-governance bodies have been reviewed and upgraded, and a reduced risk appetite across the organization has been implemented together with additional approval requirements for all material transactions. Through this exercise, the bank has significantly reduced the risk-weighted assets and leverage exposure in the Prime Services business while increasing margin requirements, and all hedge fund clients have been moved to dynamic margining. In addition, the bank has commissioned a review of double-hatted roles. A key aspect of the overall review considered individual accountability, with subsequent actions taken on 23 individuals. These actions include termination of employment and severe monetary penalties totaling approximately USD 70 mn in the aggregate via compensation adjustment tools encompassing up to 100% malus. The bank will provide a full accounting of the implicit and explicit compensation consequences for the Archegos incident in the Compensation Report after the close of the year. Finally, earlier this week, the bank announced the appointment of David Wildermuth as the new CRO, joining from Goldman Sachs and bringing a wealth of relevant risk management experience with him. He will commence his new role in early 2022. Until then, and as originally planned and announced in early April 2021, Joachim Oechslin, will continue as ad interim CRO. Joachim Oechslin and Richard Meddings, the ad interim Chair of the Risk Committee, have both been instrumental in leading and implementing the above described risk management improvement steps.

The company said, "On the SCFF matter, returning cash to investors and maximizing recoveries remain CSAM's top priority. Taking into account the upcoming fourth distribution, planned for the first half of August, of approximately USD 0.4 bn, the total cash distribution to investors will stand at approximately USD 5.9 bn. Together with the cash distributed to date and cash remaining in the funds, the cash position is equivalent to approximately USD 6.6 bn, or 66%, of the funds' net asset value at the time of their suspension. With regard to the three 'focus' areas, where we expect recovery to be more complex and take more time, we are in advanced negotiations with certain debtors on restructuring to maximize recovery, and we have set up dedicated teams of more than 60 internal and external experts as part of our efforts to maximize and expedite asset recovery. In respect of our non-focus areas, we expect overall recovery of more than 90%. Finally, on insurance, we continue to work on filing insurance claims with the aid of Greensill Bank."