Credit Suisse: Slumps after warning on losses from exiting hedge fund positions
29/03/2021 08:43
(Updates shares, adds peers' stock moves)
** Shares in Credit Suisse CSGN.S slump 13% after the
Switzerland's second biggest lender warned it was facing
significant losses after a U.S. hedge fund, named by sources as
Archegos Capital, defaulted on margin calls urn:newsml:reuters.com:*:nL1N2LR003
** "While at this time it is premature to quantify the exact
size of the loss resulting from this exit, it could be highly
significant and material to our first quarter results," the bank
said
** Zuercher Kantonalbank says the first quarter results were
already overshadowed by the affair of the insolvent finance firm
Greensill affair urn:newsml:reuters.com:*:nL1N2LO0F7
** It adds that in view of all the special events
overshadowing the core business, it does not believe there is
any reason to invest in the company's securities
** Japan's biggest brokerage and investment bank Nomura
9716.T said on Monday that it faced a possible $2 billion loss
due to transactions with a U.S. client urn:newsml:reuters.com:*:nL1N2LR00H
** Credit Suisse's stock is at the bottom of Swiss blue-chip
SMI .SSMI index and on track for its worst day in more than a
year
** Shares in Deutsche Bank DBKGn.DE fall 6%, while BNP
Paribas BNPP.PA , Commerzbank CBKG.DE slip around 1%
((Veronica.snoj@tr.com))