UBS Exposure to Archegos Hits the Swiss Bank
Posted on 04/27/2021
UBS Group AG revealed that revenues were US$ 774 million lower as a result of the default by Archegos Capital Management, which collapsed last month. Archegos was a client of UBS’ prime brokerage business. UBS said Tuesday it had exited all exposure to Archegos. Archegos Capital Management was a family office capital management firm run by Bill Hwang.
“Our first quarter results also factored in a loss related to the default by a single US-based prime brokerage client. We are all clearly disappointed and are taking this very seriously,” Ralph Hamers, UBS’s CEO said in a statement, adding that a detailed review of risk management was underway.
With regard to Archegos Capital Management, Credit Suisse lost US$ 5.5 billion, Nomura lost roughly US$ 2 billion, Morgan Stanley lost US$ 911 million and other banks have also reported losses.
