By Dhirendra Tripathi
Investing.com – Shares of Discovery (NASDAQ:DISCA) and iQIYI (NASDAQ:IQ) were down by over 4% each in Wednesday’s premarket following reports that Credit Suisse (NYSE:CS) is still unwinding its positions linked to last month’s meltdown of Archegos Capital.
Credit Suisse has not yet finished unwinding its Archegos positions, Reuters said. The bank has taken a $4.7 billion hit from dealings with Archegos Capital, prompting it to overhaul the leadership of its investment bank and risk divisions. With unwinding still a work-in-progress, the eventual hit for the Swiss bank could be higher.
Japan’s Nomura (NYSE:NMR) was also caught in the fiasco and has disclosed a $2 billion damage.
Archegos, a family office of former hedge fund manager Sung Kook ‘Bill’ Hwang, was heavily exposed to Viacom, Discovery and stocks of other media companies, using leverage provided by the likes of Credit Suisse and Nomura who also acted as his brokers.
As stocks slid sharply one day, there were margin calls and when Hwang could not meet the demand of his brokers like Credit Suisse and Nomura, they resorted to selling shares they held in his name.
Discovery, iQIYI Slump As Credit Suisse Said To Be Still Unwinding Archegos Stocks
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