Swiss bank Credit Suisse said Monday it may have suffered a highly significant loss from a default by a U.S.-based hedge fund on margin calls that it and other banks made last week, while Japan’s Nomura said it could face a loss of $2 billion due to an event with a U.S. client.
Credit Suisse didn’t identify the significant hedge fund or the other banks affected, or give other details of what happened. News reports identified the hedge fund as New York-based Archegos Capital Management.
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, the company said.
The Financial Times reported that Archegos had large exposures to ViacomCBS and several Chinese technology stocks and was hit hard after shares of the U.S. media group fell last week.
News Source : Money control