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Greensill Capital is followed by Archegos Capital, a US hedge fund. Here too Credit Suisse is at the forefront. The hedge fund has gotten into trouble, the banks are liquidating the guarantees surrounding the client.
The CS could suffer losses in the billions. The bank currently maintains a low profile, but writes that these could be “very important and material to our first quarter results.”
The stake of the Swiss financial multinational threatens to collapse today. A drop of several percent was evident before the show. When the stock market opened at 9 a.m., CS’s stock was down 10 percent.
Other banks are affected, including Japan’s Nomura. The Financial Times reported with reference to analysts a possible less than $ 2 billion in the Nomura.
By Friday, the prices of many US stocks had plummeted, including those of the US television network ViacomCBS. Goldman Sachs and Morgan Stanley had liquidated the positions of a major client, financial media reported late last week.
What was behind it was still unclear. Events are now turning upside down. According to FT, UBS also has Archegos Capitol as its main brokerage client. So far, nothing has been heard from the bank’s number 1.
The situation in CS seems even more dire. The situation at the bank’s headquarters on Paradeplatz is becoming confusing, with horrific losses threatening in several locations.
The CS was just trying to control its Greensill debacle. To this end, its emissaries indicated that the bank would partially indemnify wealthy clients with Greensill investments in their portfolios.
In the media there was talk of around 2 billion losses for the bank.
As Greensill kept the boardroom occupied, the hedge find exploded. Goldman Sachs and Morgan Stanley sold securities held by Archegos, that is, their positions in stocks, under high pressure on Friday morning.
The courses collapsed. The value of ViacomCBS and a second company in which Archegos had a large stake had plummeted within hours.
The CS was apparently not ready on Friday. The same goes for Nomura. Like the Wall Street houses, both had made large loans to the hedge fund.
These banks were “slower in unloading blocks of shares than their peers,” the FT writes this morning with reference to brokers.
The Zurich bank with the great foreign trade slept during the collapse. As Goldman and Morgan Stanley pulled the tightrope and threw the Archegos guarantee like crazy in the market, CS leaders worried about their image around Greensill.
With the public relations people and the lawyers, he hit the slopes; meanwhile, there was an accident in New York. When the CS bosses at Paradeplatz realized this, it was too late. Archegos’ staggering stock positions had lost their value.
The CS looks very old. In commerce, of all places, where she sees herself as a great player, the bench number 2 got caught on the left foot.
After the spy door, the Greensill scandal and now the hedge fund disaster, the question arises: What’s next with Credit Suisse? His new leadership under CEO Thomas Gottstein is recounted, major shareholders are demanding answers.
And nervousness grows in the board of directors. There, with Severin Schwan, the CEO of the great Roche serves as the chief independent chairman. Will the swan stay?
