The fallout from the Archegos collapse continues as Nomura faces legal challenges
- Nomura Holdings lost $2.9 billion in trades with Archegos Capital Management
- Brokers collectively lost $10 billion in the hedge fund’s collapse
- Archegos founder Bill Hwang and CFO Patrick Halligan are facing a criminal trial
- Prime brokerage activities revealed risks that threatened Wall Street’s biggest banks
- Nomura faces allegations in a lawsuit filed in London’s high court of justice
- Nomura denies allegations and plans to vigorously defend its position
Nomura Holdings, one of the brokers involved in the Archegos Capital Management collapse, lost $2.9 billion in trades with the hedge fund. The collapse of Archegos resulted in a total loss of $10 billion for brokers. The criminal trial of Archegos founder Bill Hwang and CFO Patrick Halligan will determine whether the brokers are to blame for their losses. The prime brokerage activities that led to the collapse have revealed significant risks for Wall Street’s biggest banks. Nomura is facing allegations in a lawsuit filed in London’s high court of justice, which the company denies and plans to defend vigorously.
Public Companies: Nomura Holdings (NMR), Archegos Capital Management (undefined), Credit Suisse (undefined), UBS (undefined), ViacomCBS (undefined)
Private Companies:
Key People: Bill Hwang (Founder of Archegos Capital), Steve Ashley (Executive overseeing Nomura’s institutional brokerage business), Patrick Halligan (Chief Financial Officer of Archegos), Julian Robertson (Hedge fund legend), Kentaro Okuda (Nomura Chief Executive), Kieran Looney (Consultant)
Factuality Level: 6
Justification: The article provides information about the collapse of Archegos Capital Management and the losses suffered by Nomura and other brokers. It includes details about the criminal trial of Archegos founder Bill Hwang and Chief Financial Officer Patrick Halligan. The article also mentions previous legal problems of Hwang’s firms and provides information about the lawsuit filed against Nomura in London’s high court of justice. However, the article lacks specific details about the allegations and evidence against Hwang and Halligan, and it does not provide a balanced perspective by including statements from the defendants or their attorneys.
Noise Level: 4
Justification: The article provides some relevant information about the collapse of Archegos Capital Management and the involvement of Nomura Holdings. However, it lacks in-depth analysis and fails to provide actionable insights or solutions. The article also includes some repetitive information and does not hold powerful people accountable for their actions.
Financial Relevance: Yes
Financial Markets Impacted: The collapse of Archegos Capital Management impacted Nomura Holdings and other brokers, resulting in significant financial losses.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial impact of the collapse of Archegos Capital Management on Nomura Holdings and other brokers. It does not mention any extreme events.
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