"Losses from Korean-American Bill Hwang's Block Deal Incident Expected to Exceed $6 Billion"

Nomura Confirms $2 Billion Loss... Credit Suisse Faces Potential Losses Up to $4 Billion

[Image source= Bloomberg]

[Asia Economy Reporter Byunghee Park] It is forecasted that the losses incurred by global banks due to the hedge fund Archegos Capital Management, run by Korean-American fund manager Bill Hwang (pictured), will exceed $6 billion (approximately 6.8 trillion KRW).

So far, the only officially confirmed loss is Nomura Securities of Japan, which reported $2 billion. However, on the 29th (local time), a major foreign media outlet cited market insiders saying that Swiss investment bank Credit Suisse's losses could reach up to $4 billion.

On the same day, Credit Suisse announced that it may reflect significant losses in its first-quarter earnings this year due to Archegos. While Credit Suisse has not disclosed the exact amount of losses, market insiders estimate the losses to be at least $1 billion and up to $4 billion.

The combined losses of Nomura and Credit Suisse could thus reach up to $6 billion. On this day, Nomura Securities' stock price plunged 16.3% on the Japanese stock market, marking the largest drop in history. Credit Suisse also fell 14%, recording its largest decline in a year. Goldman Sachs and Morgan Stanley, which conducted block trades before the opening of the New York Stock Exchange on the 26th, have not yet disclosed their loss amounts, so the total losses may increase.

Meanwhile, on the 29th before the opening of the New York Stock Exchange, U.S. bank Wells Fargo sold stocks worth $2.14 billion through five block trades. Wells Fargo sold 18 million shares of ViacomCBS at $48 per share and 2.8 million shares of Baidu at $198 per share. Given that these pre-market block trades and stock sales are similar to those on the 26th, suspicions have arisen that these volumes are related to Archegos.

Bill Hwang worked at Hyundai Securities in the early 1990s and traded with hedge fund Tiger Management. In 1995, he moved to Tiger Management and launched his own hedge fund, Tiger Asia Management, in 2001, achieving great success. However, in 2012, Tiger Asia's insider trading was confirmed, severely damaging his reputation. Since then, Bill Hwang renamed Tiger Asia to Archegos Capital and has continued investing.

This content was produced with the assistance of AI translation services.