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Credit Suisse headquarters in Zurich: Significant losses
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Arnd Wiegmann / Reuters / REUTERS
Credit Suisse warned on Monday of potentially high losses after a major hedge fund based in the US failed to meet additional funding requests from the Swiss bank last week.
The second largest Swiss bank and a number of other institutions have now withdrawn from their positions.
According to the Bloomberg news agency and other media outlets, the hedge fund is Archegos Capital.
According to Bloomberg, Archegos had to sell more than $ 20 billion in shares on Friday because of the claims.
The Wall Street Journal even reported $ 30 billion.
On Friday, ViacomCBS shares fell by 27 percent.
Other stocks like Discovery have also come under heavy pressure.
The Japanese financial group Nomura also warned of a potentially significant loss, but, like Credit Suisse, did not name the client.
The claim amounts to about two billion dollars.
According to people familiar with the matter, this case is also about Archegos, writes Bloomberg.
The company is one of Nomura's first trading customers.
The bank did not want to comment on these points.
Goldman Sachs, on the other hand, does not fear any high charges after exiting the business with Archegos, as Bloomberg reports, citing a person familiar with the matter.
The US bank's loans to the hedge fund are fully secured, and Goldman has already exited most of its positions.
A spokesman declined to comment.
For Credit Suisse, the hedge fund threatens to be the second expensive default in the first quarter.
The bank is already affected by the insolvency of the British-Australian financial conglomerate Greensill, in the course of which the Greensill Bank in Germany went bankrupt.
The CS share price dropped ten percent on Monday morning.
According to Credit Suisse, it is still too early to put a figure on the loss from the problems with the US hedge fund.
But it could be "very significant and essential" for the result of the first quarter.
This applies regardless of the positive trends that the bank announced earlier this month.
Credit Suisse wants to provide an update on this matter "in due course".
mik / Reuters
