• February 9, 2023

These banking giants are headed to major losses after Archegos debacle

Investment banks Credit Suisse and Nomura announced that they would suffer significant losses after the US-based hedge fund was forced to fire-sell assets and defaulted on its margin calls.

  • “The estimated amount of the claim against the customer is approximately $ 2 billion,” said Nomura
    8604, -16.33%
    stated in a statement.

  • Swiss credit
    CSGN, -13.83%
    said The sell-off “could be very significant and material to our first quarter results.”

  • Big banks like Goldman Sachs and Morgan Stanley last week discharged around $ 30 billion Shares in US media and Chinese technology companies affiliated with the Archegos Capital Management of Tiger Asia manager Bill Hwang.

  • Nomura stock fell 16% in Tokyo on Monday and Credit Suisse fell 14% in midday trading in Europe.

Read: Global banks under pressure amid US fund problems

The outlook: More block sales of Archegos-related stocks are expected, but overall the fund’s borrowing “appears to be ahead of recent central bank housing and” the economic impact is likely to be very limited, “said UBS chief economist Paul Donovan.

Source link

Jack

Read Previous

Fight Talk: Who could Dillian Whyte fight next?

Read Next

How you Can Manage Your Household Waste With A Skip Hire Service

Leave a Reply

Your email address will not be published. Required fields are marked *