Nomura said it was owed about $2bn by a US client. Wells Fargo, which on 29 March sold blocks of stock, including in ViacomCBS and GSX, also told clients 29 March it had finished liquidating its exposure.Ĭredit Suisse and Nomura weren’t major sellers Friday 26 March, traders said.Ĭredit Suisse said Monday it was too early to quantify the exact impact it faced, but that it could be “highly significant and material” to its results for the first quarter, which ends this month. Those included Discover, US-listed Chinese tutoring company GSX Techedu, Chinese e-commerce platform Vipshop Holdings and ViacomCBS, again. Morgan Stanley sold 45 million shares of ViacomCBS Sunday night, marketing the blocks to a select number of clients and responding to big investors who called to ask about additional blocks of stock the bank might be unloading, said traders.īanks on Monday sold blocks of stocks in companies that also saw selling late last week. Goldman expects the results of the Archegos account to be “immaterial” to its financial results for the first quarter ending this week, according to a person familiar with the matter. The decision to sell early helped insulate Goldman from losses that have hit other banks. The discussion among so-called prime brokerages was extremely unusual and has happened only a handful of times in recent memory, in some cases averting liquidations. Goldman and Morgan each raced to liquidate positions tied to Archegos. It quickly became clear there would be little to no coordination among the banks. On the morning of Friday, 26 March, banks started seizing Archegos’ stock, and Goldman Sachs started selling in size. A proposal emerged for all the banks to hold off on large trades and to talk further over the weekend, but the call ended without any agreement. The firm’s largest positions had turned sharply negative following a long run-up. On Thursday, 25 March, Archegos asked banks handling its business to meet to hash out a strategy to liquidate its holdings, said a person familiar with the meeting. The group of large Wall Street banks includes Goldman, Morgan, Credit Suisse, Nomura Holdings, UBS and Deutsche Bank, said people familiar with the firm’s trading. Losses threatened to spill over into the so-called prime brokerage businesses that have been handling the firm’s trading. Swaps are a common arrangement in which a trader gets access to the returns generated by a portfolio of shares or other assets in exchange for a fee. All plans are being discussed as Hwang and the team determine the best path forward,” a company spokeswoman said in a statement on the evening of Monday, 29 March.Īrchegos took big, concentrated positions in companies and held some positions in a mix of stock and swaps. “This is a challenging time for the family office of Archegos Capital Management, our partners and employees.

Archegos liquidation