Biggest Japan bank joins Nomura in bracing for Archegos loss: Report

Topics Japan | Nomura | Investment Banks

Billionaire Bill Hwang runs private investment firm Archegos Capital Management. (Photo: Bloomberg)
Mitsubishi UFJ Financial Group joined a growing list of global financial firms to take a hit from the forced unwinding of bets by Bill Hwang’s Archegos Capital Management in one of the biggest margin calls of all time.

Japan’s largest bank warned of a potential $300 million loss related to a US client, a hit that’s linked to Archegos, a person familiar with the matter said, asking not to be identified discussing a matter that isn’t public. Lenders are just starting to tally the carnage stemming from the liqui­dation of more than $20 billion of positions linked to Hwang’s New York-based family office, which has roiled stocks from Baidu to ViacomCBS and cast a spotlight on the opaque world of leveraged trading strategies.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel