Credit Suisse Takes $4.7B Hit on Archegos Meltdown

Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by ashconnor on Tuesday April 06, 2021 @10:55AM (#26712545)

Layman here. Why was Credit Suisse left holding the bag instead of the losses being distributed between the banks? Was it because they were the broker?

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by QuestionC on Tuesday April 06, 2021 @12:14PM (#26713700)

There wasn't a single broker. Each of these banks (8 in total I think?) all let Archgeos separately secure this levered up high-risk position.

The margin call references are quite apt. I believe it was a literal margin call. Goldman and Morgan Stanley forced Archgeos to square up their position, which forced Archgeos to liquidate their stock, which drove down the stock, which left Credit Suisse (who had been hoping for the banks to slowly unwind the position) in a terrible spot.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by kristjansson on Tuesday April 06, 2021 @11:08AM (#26712717)

The other firms were better at listening to the music, and knew that it had stopped?

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by herodoturtle on Tuesday April 06, 2021 @11:18AM (#26712877)

This comment reminded me of that awesome scene by Jeremy Irons in Margin Call :-)

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by arthurcolle on Tuesday April 06, 2021 @11:54AM (#26713412)

Be first, be smarter or cheat

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by lotsofpulp on Tuesday April 06, 2021 @12:46PM (#26714150)

https://www.youtube.com/watch?v=ag14Ao_xO4c

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by tedunangst on Tuesday April 06, 2021 @11:09AM (#26712734)

Because they were last to sell.

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