Nomura in Japan investigating arcegos-related losses-Source by Reuters

Takashi Umekawa

Tokyo (Reuters)-Nomura of Japan has set up an internal team to investigate the potential loss of $ 2 billion related to Archegos Capital Management, two people familiar with the matter said.

Arquegos, a New York investment fund run by former Tiger Asia manager Bill Fan, collapsed last month when debt bets on media companies such as ViacomCBS (NASDAQ :) were lifted.

Nomura, Credit suisse (SIX :) and other global banks that acted as Arquegos brokers sold their collateralized shares and scrambled to rewind the deal.

Nomura’s losses cast doubt on the risk management of Japan’s largest brokerage firm and investment bank, and attracted scrutiny from national regulators.

Nomura will disclose details of the losses disclosed in March, later this month, perhaps April 27, one source told Reuters.

Banks have set up a team to investigate banking risk management practices, sources said they weren’t named because they weren’t allowed to talk to the media.

A Nomura spokesman declined to comment.

Japanese regulators are using Arquegos to increase the oversight of high-risk transactions by financial companies.

Japan’s Mitsubishi UFJ Financial Group (NYSE :) securities division also said last month that losses associated with unnamed US clients were estimated at around $ 270 million.

According to one source, the client was Arquegos.