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Credit Suisse’s Archegos Exposure Was Reportedly Over $20 Billion

Just minutes after the SEC is reportedly “exploring how to increase transparency for the types of derivative bets that sank Archegos,” The Wall Street Journal reports that Credit Suisse Group AG had somehow allowed a massive exposure to investments related to Archegos Capital Management or more than $20 billion.

While the bank has said that its losses on the positions amounted to $4.7 billion, WSJ, citing people familiar with the matter, reports that Archegos’ bets on a collection of stocks swelled in the lead-up to its March collapse, but parts of the investment bank hadn’t fully implemented systems to keep pace with Archegos’s fast growth.

Some inside the bank who were familiar with Archegos’s exposure had thought it was a fraction of the roughly $20 billion figure, one of the people familiar with the matter said.

Credit Suisse's Archegos Exposure Was Reportedly Over $20 BillionAs the ‘perp walk’ of various executives and risk managers at the historic Swiss bank grows longer, we suspect this is not the last we will hear, as Credit Suisse has said its dealings with both Archegos and Greensill need “substantial further review and scrutiny.”

Finally, we note none of this is really surprising given that, as we just detailed, Bloomberg on Wednesday published an anonymously sourced story laying the blame for the Archegos blowup at the feet of Parshu Shah.

Reportedly, thanks to a gutting of the compliance function at the bank, Shah, who served as the salesman in charge of nurturing the bank’s relationship with Archegos….had also been head of risk at the bank’s prime-services business.

So, no wonder he never got the tap on the shoulder…

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Tyler Durden
ZeroHedges' Tyler Durden is the hero of Fight Club, the 1999 movie based on Chuck Palahniuk's novel that reflected Chuck's experience in the Cacophony Society Quote: "Goddamn it, an entire generation pumping gas, waiting tables, slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War’s a spiritual war… our Great Depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars. But we won’t. And we’re slowly learning that fact. And we’re very, very pissed off." --> see more about Tyler on snbchf
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