Nomura had already estimated it faced losses of around $2 billion dollars linked to its exposure AFP/TORU YAMANAKATOKYO: Japanese financial group Nomura Holdings on Tuesday confirmed losses of US$2.3 billion for fiscal 2020-2021 linked to the sudden liquidation of holdings by US hedge fund Archegos.
Shockwaves rippled through global financial markets and institutions last month when the fund sold at least US$20 billion in stocks as it sought to cover obligations to its lenders.The debacle hit firms including Credit Suisse, Morgan Stanley and several leading Japanese banks.It has not directly named Archegos, saying only that the losses were linked to"transactions with a US client".
In a statement issued alongside its earnings Tuesday, it announced it had"booked a loss of 245.7 billion yen in its consolidated financial results for the year ended March 31, 2021".It also announced it expects additional losses of approximately US$570 million for the fiscal year ending March 2022.US family-owned hedge fund Archegos, run by former Tiger Asia director Bill Hwang, had taken huge bets on a few stocks with money borrowed from banks.
When several important positions reversed and Archegos could not respond to margin calls, it triggered one of the biggest sudden losses in Wall Street history.The scale of Nomura's losses show"the magnitude of the company's risk concentration", said Shunsaki Sato, vice president-senior credit officer at Moody's Japan, in a note.For the last fiscal year, Nomura reported net income fell 29 per cent to 153.1 billion yen.
Being cancer-stricken and begging CPF Board to repay overdue debt; that which in any case cannot be done as the money had been commingled and funneled to private entity Temasek Holdings for Ho Ching to wager on unviable, untenable and ultimately, invariably doomed gambles