Credit Suisse, Nomura Warn of Financial Hit From Fund Selloff

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The unwinding of Archegos Capital is reverberating across Wall Street as Credit Suisse and Nomura warn of big losses

A fire sale of stocks from a large U.S. investor slammed global investment banks Credit Suisse Group AG and Nomura Holdings Inc., which said they could incur substantial losses related to the trades.

Shares in Nomura fell 16%, a record single-day drop, Refinitiv data showed. Credit Suisse’s stock fell 13%. In recent days, losses at Archegos Capital Management, run by former Tiger Asia manager Bill Hwang, have triggeredapproaching $30 billion in value, The Wall Street Journal has reported. Credit Suisse said it was too early to quantify the exact impact it faced but that it could be “highly significant and material” to its results for the first quarter, which ends this month.

“A significant U.S.-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks,” the Zurich-based bank said Monday. “Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions.”

Source: News Formal (newsformal.com)

 

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Americans should look at how much our government owes China and Japan!!! Hint...above a TRILLION!!!!!!

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