Mizuho investigates the possibility of loss due to the collapse of Arquegos

Mizuho is investigating whether the collapse of Arquegos Capital has caused significant losses as Japanese banks have revealed that they have close customer relationships with U.S.-based family offices. There is.

Mizuho’s internal investigation continued warning This week, Nomura and Mitsubishi UFJ Financial Group said Japanese lenders faced $ 2 billion and $ 270 million losses from exposure to unnamed clients, respectively.

In both cases, people familiar with the situation confirmed that the client was Arquegos, a fund run by a former hedge fund manager. Bill fan, It was driven to default by a huge margin call last week.

Mizuho does not offer a complete suite of prime brokerage services, but for those close to the situation, Japanese banks offer virtually the same facilities as Arquegos, with a potential loss of MUFG. He said it could be similar to the one.

Archegos’ group of high-fee-hungry banks has provided family offices with a total leverage of over $ 50 billion in volatile equities. Swap contract Said other funding, people who knew the situation directly.

Two executives of Archegos Prime Broker investigating According to those familiar with the investigation, whether fans deliberately misunderstood them within the range of replicated positions built up with the leverage offered by rival banks. I wasn’t able to ask Archegos for comment immediately.

Mizuho said it has no plans to revise its earnings forecast, but will revise it as needed. The bank refused to comment on its internal investigation into its exposure to Arquegos and its relationships with individual customers.

Fallout from Arquegos who missed a margin call last week Chaotic fire sale ViacomCBS shares and the chaotic rush to break out of highly leveraged positions on Friday have affected nine global banking circles with varying levels of exposure.

Group, like Goldman Sachs, Morgan Stanley and UBS, who pointed out that losses should be minimized Including Credit SuisseIts potential loss is estimated to be about $ 4 billion, according to people near the Swiss investment bank.

A discussion took place last Thursday between Arquegos and the six banks that provided Prime Brokerage services to the fund, according to directly involved bankers.

The· Talks focused on Whether the rewinding of Archegos can be managed in an orderly manner. But when some banks first moved on the sale of shares linked to Arquegos, their efforts were hampered.

Mizuho Bank, German Bank, and Bank of Tokyo-Mitsubishi UFJ were not involved in these discussions because they were considered to have lower exposure than other banks.

Mizuho investigates the possibility of loss due to the collapse of Arquegos

Source link Mizuho investigates the possibility of loss due to the collapse of Arquegos

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