Nomura Launches Internal Archegos Investigation
Nomura has built an internal team to investigate the potential $2 billion loss linked to the downfall of Archegos Capital Management.
The team has been set up to look into risk management practices, according to a «Reuters» report citing unnamed sources, after Nomura was hit by the collapse of Bill Hwang’s family office last month.
The bank will look to disclose more details about the loss, possibly on April 27.
More Regulator Scrutiny
In response, Japanese regulators will look to step up scrutiny of high risk trades by financial firms throughout the country.
According to a «Nikkei» report, the Financial Services Agency (FSA) and the Bank of Japan will scrutinize how financial institutions that incurred losses had been managing transaction risks while also conducting blanket checks on others to find if losses had been suffered elsewhere.
Fellow Japanese lender Mitsubishi UFJ also reported an approximately $270 million loss last month attributed to an unnamed U.S. client which is widely believed to be Archegos.
