IMPORTANT BREAKING NEWS FROM PLANET BULLSHIT
Nomura and Credit Suisse are facing billions of dollars in losses after a U.S. hedge fund, named by sources as Archegos Capital, defaulted on margin calls. […]
A margin call is when a bank asks a client to put up more collateral if a trade partly funded with borrowed money has fallen sharply in value. If the client cannot afford to do that, the lender will sell the securities to try to recoup what it is owed.
Margin calls on Archegos Capital prompted a massive unwinding of leveraged equity bets. Shares in ViacomCBS and Discovery each tumbled around 27% on Friday, while U.S.-listed shares of China-based Baidu and Tencent Music plunged during the week, dropping as much as 33.5% and 48.5%, respectively, from Tuesday’s closing levels. […]
Morgan Stanley sold $4 billion worth of shares early on Friday, followed by another $4 billion in the afternoon. […] Goldman liquidated more than $10 billion worth of stocks in the block trades [and] sold $6.6 billion worth of shares of Baidu Inc, Tencent Music Entertainment Group and Vipshop Holdings Ltd, before the U.S. market opened on Friday […] Following this, Goldman sold $3.9 billion worth of shares inViacomCBS Inc, Discovery Inc, Farfetch Ltd, iQIYI Inc and GSX Techedu Inc […]
Hwang, who founded Archegos and ran Tiger Asia from 2001 to 2012, renamed it Archegos Capital and made it a family office.
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Archegos borrowed a mere five times its capital. Closely regulated Goldman Sachs is at nearly seven times on a risk-weighted basis. […]
Hwang himself was a walking risk factor. He admitted to wire fraud in 2012 and in 2014 was banned from trading in Hong Kong for four years.
