by The potential loss is the latest blow to Credit Suisse, which was hit by the recent Greensill scandal. © Keystone / Gaetan Bally The Swiss bank Credit Suisse says it may face a “highly significant” loss in the first quarter due to an unnamed American hedge fund client defaulting on margin calls. In a statementExternal link issued on Monday, the bank said: “While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results”. A margin call is a request from a broker to add more money to an account to cover potential losses. Following the failure of the hedge fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swissinfo Business and Economy, Business, Featured, newsletter
This could be interesting, too:
Frank Shostak writes Assumptions in Economics and in the Real World
Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again
Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar
Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?
The potential loss is the latest blow to Credit Suisse, which was hit by the recent Greensill scandal. © Keystone / Gaetan Bally
The Swiss bank Credit Suisse says it may face a “highly significant” loss in the first quarter due to an unnamed American hedge fund client defaulting on margin calls.
In a statementExternal link issued on Monday, the bank said: “While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results”.
A margin call is a request from a broker to add more money to an account to cover potential losses. Following the failure of the hedge fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions, the Swiss bank said.
Credit Suisse said it would provide an update on the matter in “due course”. It^s share price tumbled by almost 13% on Monday morning at the news (as of 11am).
Earlier, Japanese lender Nomura Holdings Inc. also warned of a “significant” potential loss from an unnamed US client.
According to various international media, the US hedge fund is Archegos Capital Management, which was founded by Bill Hwang.
The potential loss is the latest blow to Credit Suisse, which was hit by the recent Greensill scandal. The Swiss bank this month closed around $10 billion of supply-chain finance funds that bought notes from Greensill.
You Might Also Like
Weekly SNB Sight Deposits and Speculative Positions: SNB selling euros and dollars
2021-03-29
Update March 29 2021: SNB selling euros and dollars. Sight Deposits have fallen: The change is -0.2 bn. compared to last week, this means the SNB is selling euros and dollars.
Swiss ‘too big to fail’ banks pose little risk to the economy
2021-03-21
Three of Switzerland’s “too big to fail” banks no longer threaten to cause a seismic shift in the economy should they collapse, says the financial regulator. Zurich Cantonal Bank, PostFinance and the Raiffeisen banking group are now deemed to have put into place credible plans for an orderly bankruptcy.
The Swiss eID law has flaws, but is another version worth the wait?
2021-02-19
The eID is billed as a long-overdue key to the digital world, a single access point for services provided by a range of public and private-sector organisations. But the model proposed by Switzerland – being put to a nationwide referendum in March – is far from watertight.
Pandemic dents Swiss appetite for new cars
2021-01-30
Covid-19 has been blamed for a 17.8% decline in car registrations in Switzerland last year. The number of motor vehicle sales fell even further – by nearly a quarter.
Swiss advance plans to take goods transport underground
2020-11-15
Building a 500-km tunnel network to transport goods under Central Switzerland is the ambitious aim of the “Cargo Sous Terrain” project. The vision has moved closer to reality since the Swiss government brought forward enabling legislation last month.
Swiss multinationals: global heavyweights in high-risk sectors
2020-11-12
Home to big players in the raw materials, food and chemicals industries, Switzerland boasts one of the world’s highest concentrations of multinational headquarters.
Novartis boosts involvement in anti-Covid treatment
2020-10-31
The biotech company and the pharmaceutical giant want to develop and market a drug with a unique approach for the prevention and treatment of Covid-19.
Swiss consumers want repair label on electronic appliances
2020-10-24
No less than 98% of people polled by a consumer protection alliance are in favour of a labelling system that evaluates the repairability of electronic and household appliances. Most of them were also prepared to pay more for a product that offered specific repair guarantees.
Tags: Business,Featured,newsletter