Credit Suisse Takes $4.7B Hit on Archegos Meltdown

Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by duxup on Tuesday April 06, 2021 @10:29AM (#26712174)

I read elsewhere (can't read this article) that some other banks had made similar deals with Archegos, but they saw the trouble coming and were able to offload their exposure / shares (sell the house using the analogy) before other banks and thus were able to get out with limited or no losses.

Does that sound right?

It seems strange to me that using the house analogy ... there's potentially WAY more than say a 15 percent loss (using the 115% number) if other lenders decide to nope out.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by lordnacho on Tuesday April 06, 2021 @10:51AM (#26712486)

Disregard the 115%, that's from the pre-GFC times when banks used to give you more money than you needed to buy the house, plus some more to buy a car.

You're right there were several deals, but again, you're allowed to ask questions as a PB. Clearly if you're lending money to a guy who is borrowing from a bunch of other people to do the same thing, you should have a think about it.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by duxup on Tuesday April 06, 2021 @10:56AM (#26712556)

>you should have a think about it.

Yeah in a couple other articles it seems some banks refused to lend to / cut off Archegos at some point(s). These guys who are all leverage all the time ... seems inevitable they get it wrong.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by tedunangst on Tuesday April 06, 2021 @11:14AM (#26712814)

Turns out banks don't like telling other banks what all their internal positions are.

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