November 17, 2021

Archegos fallout shows big banks need to be resilient, Swiss cenbank says

ZURICH, June 17 (Reuters) – Losses from exposure to U.S.-based investment firm Archegos have demonstrated the need for “too big to fail” capital requirements to ensure adequate resilience at Credit Suisse (CSGN.S) and UBS (UBSG.S), the Swiss National Bank (SNB) said on Thursday.

“This incident demonstrates that banks are exposed to significant risks that are not necessarily related to macroeconomic or system-wide financial shocks but may nevertheless lead to large losses,” the central bank said in its 2021 financial stability report.

The SNB noted both banks, “but in particular Credit Suisse”, had suffered large losses.

UBS reported a $774 million loss from Archegos. read more

Meanwhile, Credit Suisse’s investment bank lost more than $5 billion from the collapse of Archegos, just on the heels of the collapse of over $10 billion of client investments linked to insolvent British…

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