ZURICH/NEW YORK - Wall Street counted the cost of the Archegos Capital meltdown on Tuesday, with pressure mounting on Credit Suisse and regulators stepping up scrutiny of the fallout from banks’ unwinding the New York fund’s positions.
Credit Suisse’s shares fell another 3% on Tuesday and have slumped 16% so far this week, while shares of most other major European and U.S. banks bounced back from Monday’s battering. Britain’s Financial Conduct Authority has also been involved in some of the calls with market players, the source said.
“We would expect regulators will look carefully into this event and would not be surprised if there were some changes especially in light of the new administration,” banking analyst Vivek Juneja of JPMorgan wrote in a note on Tuesday. Investors are likely to question why Credit Suisse appears to have suffered larger losses on Archegos than some of the fund’s other brokers.
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