Credit Suisse Takes $4.7B Hit on Archegos Meltdown

Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by lotsofpulp on Tuesday April 06, 2021 @12:40PM (#26714060)

>What sucks is the leverage is going to be demonized here, when the actual problem is Hwang's lack of transparency (albeit legal) to his brokers and his frankly stupid risk management.

Seems to me the onus is on CS and other prime brokers to require Hwang to disclose or otherwise do due diligence on his other bets.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by fractionalhare on Tuesday April 06, 2021 @03:49PM (#26716548)

They can wag their finger, but they don't legally have recourse for finding out this information ahead of time if Hwang and his existing lenders don't volunteer it. That's just the current state of play with margin lending.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by lotsofpulp on Tuesday April 06, 2021 @04:03PM (#26716693)

Then the onus is on CS to correctly price that risk, or not lend the funds.

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Re:Credit Suisse Takes $4.7B Hit on Archegos Meltdown by fractionalhare on Tuesday April 06, 2021 @04:48PM (#26717206)

And that is why heads of risk lost their jobs this week!

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