“We had a prime brokerage relationship with Archegos. We were well collateralized at all times over the last week and no longer have any exposure. We did not experience losses related to closing out our exposure" the company noted.
TickerSecurityLastChangeChange %WFCWELLS FARGO & CO.39.40+0.91+2.36%Powered by
The $10 billion hedge fund, run by Bill Hwang, was forced to liquidate positions last week, causing extreme swings in a number of stocks, including Discovery and ViacomCBS, according to reports.
While Wells Fargo shares rose following the disclosure, Credit Suisse shares remain under pressure.
The bank, on Monday, warned investors that "a significant US-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks… While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant."
TickerSecurityLastChangeChange %CSCREDIT SUISSE GROUP AG10.99-0.40-3.51%Powered by
It remains unclear what other U.S. financial institutions have exposure and to what extent. Goldman Sachs, JPMorgan and Morgan Stanley shares were higher on Tuesday, reversing losses from Monday.