© Reuters. File image: Nomura Holdings logo in Tokyo


Written by Takashi Umikawa

TOKYO (Reuters) – Japan’s Nomura has formed an internal team to investigate a potential $ 2 billion loss related to Archegos Capital Management, two sources familiar with the matter said.

The Archegos Fund, a New York investment fund run by Bill Hwang, a former director of Tiger Asia, collapsed last month when its indebted bets on media companies including ViacomCBS (NASDAQ 🙂 collapsed.

Nomura, Swiss credit (SIX 🙂 and other international banks, who acted as brokers for Archegos, have rushed to sell the shares they own as collateral and cancel trades.

Nomura’s loss overshadowed the risk management of Japan’s largest brokerage and investment bank, and attracted scrutiny from regulators in the country.

One of the sources told Reuters that Nomura plans to disclose details of the loss, which it revealed in March, later this month, and possibly April 27.

The sources, who asked not to be named because they are not authorized to speak to the media, said that the bank has formed a team to look into the bank’s risk management practices.

A Nomura spokesman declined to comment.

Japanese regulators are tightening scrutiny of risky trades by financial firms in the wake of Archegos.

The Japanese securities unit of Mitsubishi UFJ Financial Group (NYSE 🙂 said last month that its loss related to an unnamed US customer was estimated at $ 270 million.

A source said the customer was Archegos.

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