Hedge fund Archegos Capital’s losses send banks scrambling


Archegos hedge fund experienced major losses last week resulting in reducing share values in CXredit Suisse and Nomura, both warning future losses in billions. According to Yahoo Finance, Archegos faced margin calls on its positions last week but failed to provide extra cash.


Credit Suisse on Monday warned it was facing “highly significant” losses linked to Archegos that could be “material to our first quarter results”.

The Swiss lender didn’t name Archegos but said: “A significant US-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks.”

Credit Suisse said it was “in the process” of selling shares held by Archegos. The bank said it was “premature” to estimate how much it would likely lose from the crisis.

“We intend to provide an update on this matter in due course,” Credit Suisse said.

Shares sunk 13.4% in Zurich.

Japanese bank Nomura said it too was facing “a significant loss arising from transactions with a US client.” The bank said it was “currently evaluating the extent of the possible loss” but said it was trying to claw back $2bn from Archegos.

Shares in Nomura sunk over 16% in Tokyo.