JBAXY - Credit Suisse cut to Neutral at JPMorgan due to Archegos Greensill damage

JPMorgan analyst Kian Abouhossein downgrades Credit Suisse ([[CS]] +0.2%) to Neutral from Overweight as uncertainty remains in the wake of the estimated $8.7B total capital hit the Swiss bank is incurring from Archegos Capital and Greensill, two high-profile failures."It is still not clear how the bank managed to take a CHF 4.4B ($4.7B) charge for one client in the Prime Brokerage business, which we estimate generates less than CHF 1B p.a., in revenues, i.e. reflecting poor risk management," Abouhossein writes in a note to clients.Sees further negative newsflow relating to Greensill, where litigation risk is a key concern and increased regulatory scrutiny from FINMA as well as other regulators.Sees higher costs and capital charges; increased cumulative litigation provisions estimate to CHF 2B over 2021-2023.Reduced dividend and no share buyback support puts CS at a disadvantage to its peers such as UBS (UBS) and Julius Baer (JBAXY).Previously, BofA Securities analyst Alistair

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Credit Suisse cut to Neutral at JPMorgan due to Archegos, Greensill damage