Premium Only Content
![Global banks bracing for losses amid US hedge fund collapse](https://1a-1791.com/video/s8/1/x/C/i/9/xCi9b.qR4e-small-Global-banks-bracing-for-lo.jpg)
Global banks bracing for losses amid US hedge fund collapse
World banks may lose over $6 billion from the downfall of the US investment firm Archegos Capital, sources told Reuters. Regulators are closely monitoring the situation as panic spreads about the possible scale of the fallout.
The sudden liquidation of the New York-based billionaire Bill Hwang’s Archegos Capital Management ignited a fire sale of more than $20 billion in assets that has left some of the world’s biggest investment banks bearing billions of dollars of losses.
According to billionaire investor Mike Novogratz, the collapse of Hwang’s Archegos fund could turn out to be “the most spectacular personal loss of wealth in history.”
The problems started last week when a disappointing stock sale by media giant ViacomCBS triggered devastating bank margin calls for Archegos, three people familiar with the matter said. Shares in ViacomCBS plummeted 23% last Wednesday after the media company sold shares at a price that diluted its value. The shares continued to decline, setting off alarm bells at Archegos’ prime brokers and prompting them to offload stock in all of Archegos’ investments.
According to the sources, Goldman Sachs and Morgan Stanley were quick to offload shares on Friday, forestalling a material financial impact.
Meanwhile, investment banks Nomura and Credit Suisse warned investors that they were facing huge losses from their exposure to Archegos. Shares in Japan’s Nomura plunged 16% and Credit Suisse dropped 14% amid analyst speculations on how much money they could lose.
Nomura has already warned it faces a possible $2 billion loss while Credit Suisse said its losses would be “highly significant and material.” Analysts estimate the Swiss bank’s losses could amount to $4 billion. In a statement, Credit Suisse said that “a significant US-based hedge fund defaulted on margin calls made last week,” and that meant it and other banks were forced into "the process of exiting these positions.”
Deutsche Bank said it had significantly de-risked its Archegos exposure without incurring any losses and was managing down its “immaterial remaining client positions,” on which it did not expect to incur a loss.
-
15:07
TimcastIRL
3 years agoHedge Fund That Bet Against GameStop Stock SHUT DOWN With Double Digit Losses, Normal People WIN
2042 -
2:56
KGTV
3 years agoChula Vista couple pursues art passion amid job losses
4 -
2:57
Reuters
3 years agoAmid global pressure, Israel, Hamas agree to ceasefire
1.98K32 -
15:28
Richest You with Tom Sweeney
3 years ago $0.08 earnedGold as a GLOBAL Currency with Glint Pay | The End of Central Banks?
2982 -
0:59
Sonys
3 years ago $0.31 earnedGlobal warming ?
9188 -
10:46
Mike Rowe
1 day agoRiley Gaines Was Right All Along | The Way I Heard It with Mike Rowe
86.7K86 -
25:19
SB Mowing
1 day agoI had to do a DOUBLE TAKE because I couldn’t see the house at first
53.6K26 -
2:15:43
I_Came_With_Fire_Podcast
14 hours agoChina's Global Strategy, US Military Challenges, & The Battle for Influence
54.6K14 -
2:37:42
FreshandFit
18 hours agoGreg Doucette Guessed Their Body Fat Percentages And THIS Happened...
168K122 -
5:08:30
Akademiks
18 hours agoKendrick Lamar SPEAKS for first time SINCE BEEF in new Interview. Drake preppin new album. YE WYLING
198K28