CNN: Hedge fund failure slams Credit Suisse, Nomura and other banks
(CNN Business)Major global banks could be hit with billions of dollars in losses after US investment firm Archegos Capital was forced to dump shares last week when it got into financial trouble.
Nomura and Credit Suisse said Monday that earnings might take "significant" hits after a client of their broking services defaulted on margin calls last week, roiling Wall Street. Shares in both banks plunged on Monday, wiping billions of dollars off their market capitalization.
US investment banks Goldman Sachs (GS) and Morgan Stanley (MS) also fell Monday morning.
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Update #1: Global banks warn of possible losses from hedge fund default (AP) Update #2: Billions in Secret Derivatives at Center of Archegos Blowup (Bloomberg)
WNU Editor: The experts are saying that this hedge fund collapse and the exposure of a number of banks will be contained. It better be. The alternative will be the start of a sell-off in the financial markets that may have no end.
Update #3: Talk about timing. The IMF has been getting ready for this type of crisis. For those who want to go into the weeds to understand what is happening, check out the video below that was posted just a day before this new crisis.
Update #4: Zero Hedge is always a good source to understand these type of market developments …. CFDs – The Dirty Little Secret Behind The Collapse Of Archegos (Zero Hedge).
Update #5: These are teh companies that have been impacted so far …. Wall Street banks ditch $19 billion of stocks in ‘unprecedented’ block trade selloff – media (RT).Original Article
It's always fun to ask what if. What if you had your choice of playing …