Business & Investment

Credit Suisse Unloads $ 2.3 Billion Shares Related to Arquegos Capital

Drew Singer, Sridhar Natarajan, Crystal Tse, Gillian Tan

Credit suisse Group AG Arquegos Capital exploded for more than a week after some rivals dumped their shares and avoided losses.

Swiss banks have hit the market in block trades with ViacomCBS Inc., Vipshop Holdings Ltd. and Farfetch Ltd., said anyone with knowledge of the issue.Stocks traded well below last month’s levels Bill fanFamily office collapsed.

Similar to Credit Suisse’s US-listed stocks, the stocks of the three companies fell in post-market trading.

The Zurich-based company has not yet provided investors with up-to-date information on the extent of the blow it faces from its relationship with Arquegos, but according to people with knowledge of the matter, it can reach billions of dollars. There is a possibility. Brian Ching, chief of Credit Suisse’s investment bank, announced his resignation on Tuesday and will resign. Leaders are also discussing the dismissal of Chief Risk Officer Lara Warner, while sparing CEO Thomas Gottstein.

Paul Galliet, head of stock sales and trading, will stay until April to help with the transition, but will soon resign from his role, according to a staff memo reviewed by Bloomberg.

The unwinding of Billfan’s Arcegos portfolio has become one of the largest fund frameouts since the end of Long-Term Capital Management in the 1990s.

Archegos has grown rapidly against the backdrop of highly leveraged betting. Stocks such as ViacomCBS and GSX Techedu Inc. fell and margin claims were raised, which were canceled within a few days of the end of last month.

Credit Suisse and Nomura Holdings have told shareholders that their business is facing “significant” losses. Goldman Sachs Group Inc, one of the first banks to liquidate Archegos’ holdings. And Morgan Stanley seem to have avoided a blow to the business.

Given the size of Arquegos, banks could suffer total loss in the range of $ 5 billion to $ 10 billion when positions are closed, JPMorgan Chase & Co, led by Kian Abouhossein. Analyst wrote a note to the client last week.

Credit Suisse’s offer on Monday consisted of approximately 34 million shares of ViacomCBS, 14 million shares of Vipshop and 11 million shares of Farfetch.

Credit Suisse Unloads $ 2.3 Billion Shares Related to Arquegos Capital Credit Suisse Unloads $ 2.3 Billion Shares Related to Arquegos Capital

Back to top button