Credit Suisse, Nomura Slump as Banks Tally Archegos Damage
- Goldman sees immaterial impact after massive margin call
- Unwinding of Archegos trades has roiled shares including Baidu
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Nomura Holdings Inc. and Credit Suisse Group AG both plunged more than 15% after saying they may face “significant” losses, as some of the world’s biggest banks tally their exposure to wrong-way bets by Archegos Capital Management.
Lenders to Bill Hwang’s New York-based family office are racing to contain the fallout after Archegos failed to meet margin calls last week. The forced liquidation of more than $20 billion of positions linked to the firm roiled stocks from Baidu Inc. to ViacomCBS Inc., casting a spotlight on the opaque world of leveraged trading strategies facilitated by some of Wall Street’s biggest names.