Big banks have weighed on Wall Street after warnings of potential losses from a hedge fund's default on margin calls, although optimism about the US economy limited the falls.It caused Credit Suisse shares to plunge 14 per cent and Nomura to fall 16.3 per cent
Archegos is run by former Tiger Asia boss, Bill Hwang. Tiger Asia was a Hong Kong-based fund trading in Asian shares.Nomura shares fell 16.3 per cent, a record one day drop. "There's still chatter as to whether or not, and which, American banks may be affected. That is a question that's lurking," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.Media stocks Discovery and Viacom, US-listed shares of Baidu and VIPShop, all linked to Archegos, were lower, extending recent losses.
The Dow Jones index rose 0.3 per cent or 99 points to 33,179, while the S&P 500 ended flat, down 3 points to 3,971 and the Nasdaq Composite lost dropped 79 points, or 0.6 per cent to 13,060.
Source: Loan News Today (loannewstoday.net)
So mega banks continued to do business with these “wolf of Wall Street” types, long after they’d been fined $50 million for insider trading. This hedge fund should move to Australia: fertile ground for corporate sleazebags and tax breaks to boot....