The Swiss bank warned that a U.S. hedge fund client failed to meet its margin calls, and is likely to hit first-quarter results.
Zurich-based Credit Suisse is unwinding a hedge fund client which defaulted on its margin calls last week, it said in a statement on Monday. The end result «could be highly significant and material to our first-quarter results,» the bank said.
The Swiss bank didn't name the hedge fund. Several banks are buckling up for a rough ride this week after a number of large block trades were linked to New York-based Archegos Capital last week, according to several media outlets including «Reuters».
Nomura Discloses Hit
The move sparked massive drops in the stocks like ViacomCBS and Tencent. Earlier on Monday, Japan's Nomura quantified its claim from a similar hedge fund client, believed to be Archegos, at $2 billion, according to «Bloomberg».
Credit Suisse said it would provide an update «in due course». The bank is currently grappling with the insolvency of its supply chain partner, Greensill, and a $10.1 billion line of funds the two co-managed.
