---
title: Credit Suisse And Nomura Warn On Possible Losses
description: A significant US-based hedge fund defaulted on margin calls made last week by a number of banks.
image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/regulators-warn-race-bottom-clearing-950-May-12-2022-08-36-22-65-AM.jpg
---

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 03.29.2021

 By Shanny Basar

 Hedge Funds

# Credit Suisse And Nomura Warn On Possible Losses

 03.29.2021 By Shanny Basar

![Credit Suisse And Nomura Warn On Possible Losses](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/regulators-warn-race-bottom-clearing-950-May-12-2022-08-36-22-65-AM.jpg)

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A significant US-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks. Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions. While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results, notwithstanding the positive trends announced in our trading statement earlier this month. We intend to provide an update on this matter in due course.

Source: Credit Suisse

Nomura Holdings announced that on March 26, 2021, an event occurred that could subject one of its US subsidiaries to a significant loss arising from transactions with a US client. Nomura is currently evaluating the extent of the possible loss and the impact it could have on its consolidated financial results.

The estimated amount of the claim against the client is approximately $2 billion based on market prices as of March 26. This estimate is subject to change depending on unwinding of the transactions and fluctuations in market prices. Nomura will continue to take the appropriate steps to address this issue and make a further disclosure once the impact of the potential loss has been determined.

As of the end of December 2020, Nomura maintained a consolidated Common Equity Tier 1 ratio of over 17 percent, which is substantially higher than the minimum regulatory requirement. Accordingly, there will be no issues related to the operations or financial soundness of Nomura Holdings or its US subsidiary.

Source: Nomura

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