TOKYO, April 8 (Reuters) - Japan's Nomura has set
up an internal team to investigate a possible $2 billion loss
relating to Archegos Capital Management, two people familiar
with the matter said.
Archegos, a New York investment fund run by ex-Tiger Asia
manager Bill Hwang, collapsed last month when its debt-laden
bets on media companies including ViacomCBS unravelled.
Nomura, Credit Suisse and other global banks, which
acted as brokers for Archegos, scrambled to sell the shares they
held as collateral and unwind the trades.
The loss incurred by Nomura has thrown Japan's biggest
brokerage and investment bank's risk management into question
and attracted scrutiny from the country's regulators.
Nomura plans to disclose details related to the loss, which
it disclosed in March, later this month, possibly on April 27,
one of the sources told Reuters.
The bank has set up the team to look into the bank's risk
management practices, said the sources, who declined to be named
as they were not authorised to speak to the media.
A spokesman for Nomura declined to comment.
Japanese regulators are heightening scrutiny of high-risk
trades by financial firms in the wake of Archegos.
The securities unit of Japan's Mitsubishi UFJ Financial
Group (MUFG) also said last month its loss related to
an unnamed U.S. client was estimated at around $270 million.
A source said the client was Archegos.
(Reporting by Takashi Umekawa
Editing by Sumeet Chatterjee, David Goodman and Alexander Smith)