by Just minutes after the SEC is reportedly “exploring how to increase transparency for the types of derivative bets that sank Archegos,” The Wall Street Journal reports that Credit Suisse Group AG had somehow allowed a massive exposure to investments related to Archegos Capital Management or more than billion. While the bank has said that its losses on the positions amounted to .7 billion, WSJ, citing people familiar with the matter, reports that Archegos’ bets on a collection of stocks swelled in the lead-up to its March collapse, but parts of the investment bank hadn’t fully implemented systems to keep pace with Archegos’s fast growth. Some inside the bank who were familiar with Archegos’s exposure had thought it was a fraction of the roughly billion
Topics:
Tyler Durden considers the following as important: 3.) Swiss Banks, Featured, newsletter
This could be interesting, too:
Nachrichten Ticker - www.finanzen.ch writes Die Performance der Kryptowährungen in KW 9: Das hat sich bei Bitcoin, Ether & Co. getan
Nachrichten Ticker - www.finanzen.ch writes Wer verbirgt sich hinter der Ethereum-Technologie?
Martin Hartmann writes Eine Analyse nach den Lehren von Milton Friedman
Marc Chandler writes March 2025 Monthly
Just minutes after the SEC is reportedly “exploring how to increase transparency for the types of derivative bets that sank Archegos,” The Wall Street Journal reports that Credit Suisse Group AG had somehow allowed a massive exposure to investments related to Archegos Capital Management or more than $20 billion.
While the bank has said that its losses on the positions amounted to $4.7 billion, WSJ, citing people familiar with the matter, reports that Archegos’ bets on a collection of stocks swelled in the lead-up to its March collapse, but parts of the investment bank hadn’t fully implemented systems to keep pace with Archegos’s fast growth.
Some inside the bank who were familiar with Archegos’s exposure had thought it was a fraction of the roughly $20 billion figure, one of the people familiar with the matter said.
Finally, we note none of this is really surprising given that, as we just detailed, Bloomberg on Wednesday published an anonymously sourced story laying the blame for the Archegos blowup at the feet of Parshu Shah.
Reportedly, thanks to a gutting of the compliance function at the bank, Shah, who served as the salesman in charge of nurturing the bank’s relationship with Archegos….had also been head of risk at the bank’s prime-services business.
So, no wonder he never got the tap on the shoulder…
You Might Also Like
Weekly SNB Sight Deposits and Speculative Positions: SNB buying euros at high prices
2021-04-19
Update April 19 2021: SNB intervening. Sight Deposits have risen by +0.2 bn CHF, this means that the SNB is intervening and buying Euros and Dollars: The change is +0.2 bn. compared to last week.
Credit Suisse Slashes Bonuses After $4.7 Billion Archegos Disaster
2021-04-13
While all of the banks playing “pass the hot potato” with Archegos Capital’s now-dismantled equity book are undoubtedly still assessing the damage they incurred (or at least will report to shareholders), it looks like no one had it worse than Credit Suisse. The banking giant has now slashed its bonus pool by “hundreds of millions of dollars” according to FT, after the firm lost $4.7 billion in the Archegos implosion.
Credit Suisse Dumping Huge Archegos Blocks; Liquidating Millions In VIACS, VIPS And FTCH
2021-04-06
Literally moments ago we said that the Archegos portoflio was being sold off all day on fears of "stealth" prime broker deleveraging, as tens of millions of shares were yet to be accounted for.
Credit Suisse Claws Back Bonuses, ‘Restructures’ Asset-Management Unit As Greensill Scapegoating Continues
2021-03-19
Credit Suisse is still reeling from the collapse of Greensill Capital, a firm which it championed by helping to sell its financial products (created by ensconcing trade invoices in a complex securities wrapper).
Art Basel and UBS Global Art Market Report: Online sales reached record highs in 2020, doubling in value
2021-03-16
Art Basel and UBS announced today the publication of the fifth Art Basel and UBS Global Art Market Report, authored by renowned cultural economist Dr Clare McAndrew. The report integrates insight from a recent survey of 2,569 high-net-worth (HNW) collectors, conducted by Arts Economics and UBS Investor Watch, across ten markets: the United States, United Kingdom, France, Germany, Italy, Hong Kong, Taiwan, Singapore, Mexico, and for the first time Mainland China, as well as data from UBS Evidence Lab.
Credit Suisse Launches Probe Into Collapsed Greensill Trade-Finance Funds
2021-03-11
Roughly a weekand a-half has passed since Credit Suisse gated funds containing $10BN in assets packaged by Greensill, the troubled financial innovator that suckered in former British PM David Cameron, SoftBank and legions of clients and investors with its stated mission to “democratize” supply-chain finance.
SocGen Slashes Banker Bonuses Amid ECB Pressure
2021-03-04
Despite banks, broadly speaking, having a banner year in 2020 as central-bank-liquidity more-than-washed over the losses due to COVID and policy restrictions, banker bonuses have come under pressure.In Europe, the picture is more uncertain as banks’ performance has been mixed.
UBS Multibanking available to corporate clients throughout Switzerland
2021-02-01
UBS has successfully completed the pilot phase of its new multibanking function and is now gradually rolling out the offering across Switzerland. UBS Multibanking will now also give SMEs full transparency over all their accounts and allow them to execute payments debited from accounts with third-party banks directly in UBS E-Banking.
Tags: Featured,newsletter