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Morgan Stanley had $911 million in first-quarter losses tied to Archegos fund meltdown

Added 04-16-21 11:02:02am EST - “The impact on Wall Street of the epic meltdown of Archegos is coming into clearer view.” - Cnbc.com

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Posted By TheNewsCommenter: From Cnbc.com: “Morgan Stanley had $911 million in first-quarter losses tied to Archegos fund meltdown ”. Below is an excerpt from the article.

Morgan Stanley posted blockbuster results for the first quarter, but a single prime brokerage client cost the firm nearly $1 billion.

In its earnings results, Morgan Stanley said Friday it had a $644 million loss from a "credit event" for that client, as well as $267 million in related trading losses.

That client was Bill Hwang's Archegos, Morgan Stanley CEO James Gorman said, confirming a CNBC report.

While Morgan Stanley was the biggest prime broker to Archegos, other banks suffered larger losses. Credit Suisse, which CNBC has reported was the No. 2 broker to Archegos, took a $4.7 billion hit to unwind the losing bets and shuffled top managers because of the meltdown. Nomura said it could face $2 billion in losses.  

During his scheduled call with analysts to discuss the quarter, Gorman said Archegos owed it $644 million after its meltdown in late March.

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