Credit Suisse Loses $4 Billion

[WHITT]

Investment bank Credit Suisse expects a first-quarter pre-tax loss of around $960 million, after taking a charge of $4 billion as a result of the meltdown of U.S. hedge fund Archegos Capital.

Archegos Capital defaulted on margin calls and set-off a domino of losses. In a trading update before the market open, Credit Suisse said a number of other banks were also affected and had begun exiting their positions with the hedge fund.

Nomura also issued a trading update on Monday warning of a "significant loss" at one of its U.S. subsidiaries resulting from transactions with a client stateside. Japan's largest investment bank said it was evaluating the potential extent of the loss, estimated at $2 billion.

A trader who asked to remain anonymous stated that Credit Suisse, along with Goldman Sachs, Morgan Stanley and Deutsche Bank, all forced Archegos to liquidate a number of positions.

[malaise]

1. Freaking Wow! Get thee to the greatest page for visibility

https://en.wikipedia.org/wiki/Archegos_Capital_Management

https://en.wikipedia.org/wiki/Bill_Hwang
Bill (Sung Kook) Hwang is a Korean-born New York-based investor on Wall Street.[1][2] The Wall Street Journal reported that Hwang lost US$8 billion over the course of ten days in late March 2021, imposing large losses on his bankers Nomura and Credit Suisse.[3]

[gldstwmn]

2. That's gonna leave a mark.

[Demovictory9]

3. wow... how did that happen?

[WHITT]

4. Well

A margin call occurs when a broker demands that an investor deposits more money into a margin account, which enables them to invest money borrowed from the broker, to bring it to a minimum required amount. The investor then has to either deposit into the account, or sell some of the assets held in it.

Dominoes started falling...