Skip to content
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

BANKS FACE MASSIVE LOSSES AS HEDGE FUND DEFAULTS

As we noted in the U.S. Markets Overview, one of the reasons for the fall in today’s Dow was growing concern over what we term the “Archegos Capital Management calamity,” which illustrates how rigged the equity markets are and how Wall Street is completely disconnected with Main Street.  
Credit Suisse and Nomura are among the banks warning of significant first-quarter losses after a hedge fund reported to be Archegos Capital Management was unable to meet margin calls and its lenders forced it to dump its stock holdings to raise cash, forcing share prices for many companies into a tailspin.
Share prices of Viacom, Discovery, Tencent, Baidu, and other prominent companies plunged last week as the hedge fund flooded their shares into the market.
It is “premature” to specify how much money Credit Suisse has lost, the company said in a statement, but the amount “could be highly significant and material to our first quarter results.”
The loss at Nomura, Japan’s largest bank, is estimated at $2 billion, CNBC reported.
Credit Suisse’s share price dropped 14 percent on the news; Nomura’s fell 16 percent.
“It seems that Nomura and Credit Suisse’s risk management was maybe not as stringent as it should have been,” Morningstar equity analyst Johann Scholtz told CNBC.
The loss adds to Credit Suisse’s catalog of crises: the bank is out a reported $10 billion with the collapse in March of supply-chain financier Greensill Capital. Credit Suisse also was touched by scandals that embroiled clients Luckin Coffee and Wirecard, and the bank’s CEO resigned in February 2020 amid its own scandal involving spying on senior executives.
This latest debacle gives “pause for thought” about Credit Suisse’s management, Scholtz said.
On 22 March, Bank of America downgraded Credit Suisse’s stock to neutral and reduced its expectations for the bank’s profit and buyback forecasts for 2021 by $500 million Swiss francs, or about $533 million.
Deutsche Bank, Goldman Sachs, and Morgan Stanley were among other banks forcing the fund to liquidate its holdings, according to CNBC. 
TREND FORECAST: As we noted, all it will take are wild card meltdowns of hedge funds, private equity groups, and so-called investment banks, the Special Purpose Acquisition Company (SPAC) racket of taking private companies public… which will mirror the sub-prime, mortgage-backed securities Bankster scam that set off the Panic of ’08. And when Wall Street crashes, the reality of the COVID War, which has destroyed hundreds of millions of lives and livelihoods, will devastate Main Street.

Comments are closed.