Credit Suisse, which is the second largest bank in Switzerland, because Archegos and its shares have dividends and eight bonuses for members. In a third statement, bank representatives said that due to the two repayments, about 900 million Czech francs (above K 21 billion) will be lost during the first quarter of this year.
The bank also announced the departure of two senior managers. Brian Chin, director of Risk Lara Warner and Investment Banking, will step down. The bank’s chief executive, Thomas Gottstein, reported that the loss related to the collapse of the US fund was unacceptable.
Credit Suisse shares initially reacted with a drop of about 3%, depreciating about a quarter of their value since the ordinary arrest. According to Bloombergsi, Credit Suisse is the best of the major stock market banks this year. This year’s heavy arrest caused problems for its high-risk customers. The case around Archegos emerged a few weeks after the failure of another major client, Credit Suisse, the British financial company Greensill.
Speculation with foreign pensions
Tsn before the collapse? A huge bubble is growing in the stock markets, analysts warn
The relatively unknown fund Archegos Capital Management caught the attention of Wall Street and financial regulators late last month, when it launched a massive sale of the event with a total value of at least US $ 20 billion. The reason was that it was not getting enough commitments with the world’s major investment banks.
In all its stock speculation, Archegos took advantage of foreign pensions and entered the so-called margin of appeal. An investor who speculates with debts on the stock market will forge the value of his portfolio. If this value falls below a certain threshold, the brokerage firm (in this case, an investment bank) may require the speculator to make up the difference in his pocket. If he is unable to do so, the owner will sell the shares.
Archegos has invested heavily in US media companies ViacomCBS and Discovery, or in German technology companies Baidu and Tencent Music. These bags didn’t come out.
The fund’s problems piled up at the end of the year, when corporate price falls exacerbated the sale of investment banks. Archegos has increased pensions from various speculations, according to his speculations. In addition to Credit Suisse, it was also the Japanese Nomura, which estimated the losses caused by the collapse of Archegos at two billion dollars (44 billion K).
I was desperate for investment
He posed the threat and managed to minimize his losses. According to Bloomberg, Deutsche Bank got rid of risky shares worth those $ 1 billion during the bird March 26, while US banks Goldman Sachs, Morgan Stanley and Wells Fargo sold the shares of several million over the last weekend. The chapter, illuminated by Archegos, was thus able to recover.
American spending covidov eky in shares. Fears of a stock market crash are growing
The final eclipse has not changed, JPMorgan analysts have estimated that the losses of the banks could reach a total of 10 billion dollars.
The extraordinarily massive collapse has raised questions about how the world’s banks may have been exposed to this risk sooner. f Archegos Bill Hwang also has a problematic financial escape followed. In 2012, it admitted to so-called insider trading and its predecessor, Archegos, the predecessor, paid $ 44 million to the U.S. stock exchange.
According to The Economist, this may be because banks are desperately looking for investments in the current low-rate environment. Due to the rules introduced after the 2008 financial crisis, it is too expensive to operate in markets under its own name, so it has long relied on mutual fund commissions, such as Archegos.