Tag: prime brokerage
The two US banks have been relatively unscathed by the blow-up of hedge fund Archegos Capital in March, which resulted in losses of over $10 billion for Wall Street.
An extensive review of the prime brokerage business at Credit Suisse will focus on derisking and resizing its hedge fund servicing unit.
James Gorman, CEO at Morgan Stanley, told analysts the loss was 'necessary' and 'money well spent' as the bank totals losses far smaller than other prime brokers.
Collapse of Archegos Capital had little impact on the prime brokerage business at Goldman Sachs as it reached record levels in first three months of this year.
A $20 billion stock fire sale shook markets as Bill Hwang’s hedge fund Archegos defaulted on margin calls prompting losses at Credit Suisse and Nomura.
Expanded prime services business more closely linked with Exane at BNP Paribas will launch after the integration of Deutsche Bank’s hedge fund clients is completed.