The total damage to banks from the collapse of the hedge fund Archegos Capital Management exceeded $ 10 billion

The total damage to banks from the collapse of the hedge fund Archegos Capital Management exceeded $ 10 billion. This follows from the reports for the first quarter, which are published by banks that provided the fund with prime broker services.

On April 27, Japanese bank Nomura reported a loss of $2.27 billion due to "transactions with a US customer and its subsidiaries." This is the bank's largest quarterly loss since 2009. Nomura expects another $572.7 million in damage after the end of the first quarter

Swiss bank UBS Group reported that it expected losses of $861 million during the second quarter of the year. UBS has not previously released estimates of its losses from Archegos. Another Swiss bank, Credit Suisse, estimated them at $4.7 billion, but by reporting for the first quarter, this amount increased to $5.5 billion. Morgan Stanley also suffered losses - he estimated the damage from the collapse at $911 million.

Credit Suisse suffered the largest loss due to Archegos Capital, followed by Nomura. Morgan Stanley ended up in No. 3, although Reuters wrote that the bank, along with Goldman Sachs and Deutsche Bank, managed to complete its deals with Archegos with little or no damage to itself.

Morgan Stanley and UBS decided that their damage was not significant enough to issue a warning to investors before the publication of the financial statements, unlike Credit Suisse, which cited its losses in the warning

Deutsche Bank is yet to publish its financials. Goldman Sachs and Wells Fargo Avoid Loss Altogether, while JPMorgan and Citigroup Cap Loss

JPMorgan estimated the possible losses of banks from the collapse of Archegos in the amount of up to $ 10 billion. At first, the bank cited the interval of $ 2-5 billion, but then expanded it to a corridor of $ 5-10 billion. JPMorgan analysts warned that the consequences of the scandal would be "very tangible."

Goldman Sachs and Morgan Stanley sold off $19 billion of Archegos assets on their balance sheets due to margin calls. Archegos was unable to comply with the collateral requirements of the creditors, so they began to forcefully liquidate its positions. Reuters called the founder and head of Archegos Capital B. Hwan "walking risk factor": in 2012 he confessed to fraud