Global banks warn of potential losses from hedge fund defaults

Swiss Bank credit Suisse On Monday it said it could face “highly significant” losses due to default by US hedge funds, while Japan and other banks in Japan did last week. Nomura Said it could cause a $ 2 billion loss due to an incident with a US customer.

credit Suisse Do not identify “significant” hedge funds or other banks affected, or give other details of what happened. News reports identified the hedge fund as New York-based Archaeological Management.

“Following the fund’s failure to meet these margin commitments, credit Suisse And many other banks are in the process of exiting these positions, ”the company said.

The Financial Times Reported that Archeogos had major risks ViacomCBS And last week, a number of Chinese technology stocks were hit hard after American Media Group shares fell.

A margin call begins when investors use their stock portfolio as collateral and banks have to make the necessary balance when share prices fall and the price of collateral is low.

credit Suisse He stated that “while it is premature to quantify the exact size of the losses arising from this exit, it could be highly significant and significant to our first quarter results, our trading statements earlier this month” Despite the positive trends announced in “.”

credit Suisse Said that it plans to release an update in a stipulated time. Nomura Said that “an incident occurred” on Friday that could subject its US subsidiary to a $ 2 billion loss based on market prices on Friday. It did not identify the customer. The bank stated that “there will be no problem related to operational or financial soundness”. Nomura Or its American subsidiary

The Archives website was not immediately available.