Bill Hwang and other executives have been arrested and charged by federal officers for their roles in a “fraudulent scheme” that created a “$36 billion house of cards”.
The bank also reduced its exposure to Russia to $0.4 billion as of the end of March as opposed to $0.6 billion at the end of last year.
New members of the board of directors will be focused on risk management processes at the bank following its massive losses caused by the collapse of the family office earlier this year.
The report found that the investment bank’s risk divisions continuously failed to address frequent exposure limit breaches by the family office.
Alongside the losses for the first quarter of 2021, the Swiss bank also announced that two executives had stepped down and that it would be slashing executive bonuses.
A $20 billion stock fire sale shook markets as Bill Hwang’s hedge fund Archegos defaulted on margin calls prompting losses at Credit Suisse and Nomura.