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Credit Suisse warns of 'significant' losses from exiting hedge fund positions

Stock MarketsMar 29, 2021 06:35
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© Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich

ZURICH (Reuters) - Credit Suisse (SIX:CSGN)'s first quarter results could suffer a material impact after the bank started exiting positions after a U.S.-based hedge fund defaulted on margin calls it made, the bank said on Monday.

"While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results," the bank said.

Switzerland's second biggest lender said the un-named hedge fund defaulted on margin calls made last week by Credit Suisse and other banks. A margin call is a demand from a broker to add more money to an account to cover potential losses.

Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions, Credit Suisse said.

Credit Suisse said it would provide an update on the matter in "due course."

The warning is a further blow to the bank which is considering compensating investors hit by the collapse of funds linked to insolvent finance firm Greensill.

The Swiss lender this month closed around $10 billion of supply-chain finance funds that bought notes from Greensill. Of this, $3.1 billion has so far been repaid and more than $1.2 billion in cash remains in the funds, leaving more than $5 billion outstanding.

Credit Suisse warns of 'significant' losses from exiting hedge fund positions
 

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Comments (8)
David Hawley
David Hawley Mar 29, 2021 8:43
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The stock market has nothing to do with the state of world economies. Its shady deals, short selling, insider trading. its nothing short of a legalised den of thieves
Chris Gibson
Chris Gibson Mar 29, 2021 8:43
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the only country which really penalises insider trading is the US, everywhere else it seems to be a joke, especially the homme country of CS.
Nasir Hanif
Nasir Hanif Mar 29, 2021 8:06
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please help me anybody there first time use this app i need help how to use
Dharyeelka Dumarka
Dharyeelka Dumarka Mar 29, 2021 8:06
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Ok bro
Sanjay Kumar Ravji
Sanjay Kumar Ravji Mar 29, 2021 8:06
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Just read and look around
Nasir Hanif
Nasir Hanif Mar 29, 2021 8:03
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hello
Sheikh Mattar
Sheikh Mattar Mar 29, 2021 8:02
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Typical, the rich gets richer at the expense of the small investors.
Nasir Hanif
Nasir Hanif Mar 29, 2021 8:02
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hello
Ade Sta
Ade Sta Mar 29, 2021 8:02
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Is this more from Archegos Capital?
Mark Ch
Mark Ch Mar 29, 2021 7:53
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Please somebody name the hedge fund for us
Nilesh Mashruwala
Nilesh Mashruwala Mar 29, 2021 7:53
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archegos capital
Leon Liu
Leon Liu Mar 29, 2021 7:53
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Archegos
Curly Chai
Curly Chai Mar 29, 2021 7:07
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Is this US based HF margin call losses linked to GME AMC
Chris Gibson
Chris Gibson Mar 29, 2021 7:07
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I'm guessing not, as GME did nothing this week. More likely linked to leveraged long positions to the Archegos Capital
masterstroke oo
masterstroke oo Mar 29, 2021 7:07
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I am thinking along the same line with you. GameStop has been over a month now
Beebs Elite
Beebs Elite Mar 29, 2021 7:07
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No 🤣🤣
Curly Chai
Curly Chai Mar 29, 2021 7:07
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Mixed replies. Wonder who are the apes n who the shills haha
 
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