Reported 4 months ago
Credit Suisse Group AG spent nearly a month liquidating its $25 billion position in Archegos Capital Management after Bill Hwang’s family office collapsed three years ago. The bank's former equity finance head, Josh Lukeman, testified at Hwang’s fraud trial, revealing the steps taken by Credit Suisse to minimize market impact during the unwinding process. Despite efforts to proceed cautiously, Credit Suisse suffered a $5.5 billion loss from its Archegos exposure, which contributed to the bank's collapse. The complexity of managing the massive stake shows the challenges involved in unwinding such positions.
Source: YAHOO