- Joined
- Sep 22, 2008
- Messages
- 77,743
- Points
- 113
Global banks brace for losses from Archegos Capital downfall
30 MAR 2021 / 17:17 H.
NEW YORK/ZURICH/TOKYO: Global banks may lose more than US$6 billion (RM24.8 billion) from the downfall of Archegos Capital, sources familiar with trades involving the US investment firm said on Monday, and regulators and investors fear the episode could reverberate more widely.
ADVERTISEMENT
Japan's Nomura and Credit Suisse of Switzerland warned of major losses from lending to Archegos for equity derivatives trades, triggering a worldwide sell-off in banking stocks.
Morgan Stanley shares fell 2.6% and Goldman Sachs Group dropped 1.7%. Nomura shares closed down 16.3%, a record one-day drop, while Credit Suisse shares tumbled 14%, their biggest fall in a year. Deutsche Bank dropped 5% and UBS was off 3.8%.
Losses at Archegos Capital Management, a family office run by former Tiger Asia manager Bill Hwang, sparked a fire sale of stocks including ViacomCBS and Discovery on Friday, a source familiar with the matter said.
30 MAR 2021 / 17:17 H.
-
A woman walking past 888 7th Ave, a building that reportedly houses Archegos Capital, in the Manhattan borough of New York City, on Monday. – REUTERSPIX
NEW YORK/ZURICH/TOKYO: Global banks may lose more than US$6 billion (RM24.8 billion) from the downfall of Archegos Capital, sources familiar with trades involving the US investment firm said on Monday, and regulators and investors fear the episode could reverberate more widely.
ADVERTISEMENT
Japan's Nomura and Credit Suisse of Switzerland warned of major losses from lending to Archegos for equity derivatives trades, triggering a worldwide sell-off in banking stocks.
Morgan Stanley shares fell 2.6% and Goldman Sachs Group dropped 1.7%. Nomura shares closed down 16.3%, a record one-day drop, while Credit Suisse shares tumbled 14%, their biggest fall in a year. Deutsche Bank dropped 5% and UBS was off 3.8%.
Losses at Archegos Capital Management, a family office run by former Tiger Asia manager Bill Hwang, sparked a fire sale of stocks including ViacomCBS and Discovery on Friday, a source familiar with the matter said.
