Credit Suisse in firing line after Archegos losses

ZURICH: Pressure was mounting on Credit Suisse on Tuesday over losses linked to the downfall of Archegos Capital, with analysts warning its dividend and share buyback plans may need to go on hold and investors advised to vote against management pay. Losses at Archegos, a family office run by former Tiger Asia manager Bill Hwang, sparked a sell-off in bank stocks on Monday as investors feared they would be forced to take big write-downs after extending billions of dollars in leverage to the fund. Global lenders may lose more than $6 billion on Archegos, sources familiar with trades involving the US investment firm have said. Credit Suisse and Japan’s Nomura are set to bear the brunt of this, according to statements from the banks and sources, with one source close to the Swiss lender saying its losses could be as high as $4 billion. The brokerage arm of Japan’s Mitsubishi UFJ Financial Group on Tuesday flagged potential losses of around $300 million related to a US client at its European subsidiary, declining to comment on whether that client was Archegos. — Reuters