JPMorgan Says Banks’ Archegos Hit May Be Up to $10 Billion

  • Credit Suisse faces loss up to $4 billion: Berenberg
  • JPMorgan analysts say watch out for credit agency statements
Archegos Capital Blowup: What Investors Need to Know
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Banks roiled by the Archegos Capital fallout may see total losses in the range of $5 billion to $10 billion, according to JPMorgan.

Losses from trades unwinding related to Archegos will be “very material” in relation to lending exposure for a business that is mark-to-market and holds liquid collateral, analysts led by Kian Abouhossein wrote in a note. They added that Nomura Holdings Inc.’s indication of potentially losing $2 billion and press speculation of a $3 billion to $4 billion loss at Credit Suisse AG is “not an unlikely outcome.”