The Central Bank of Ireland is closely monitoring Credit Suisse’s multibillion dollar exposure to the collapse of a US hedge fund, Archegos Capital Management, and liaising with other regulators, according to sources. Before then, non-EU banks had to set up full subsidiaries in the Republic that were directly regulated by the Central Bank of Ireland. A spokeswoman for the Central Bank and spokesman for Swiss financial regulator Finma declined to comment, while a spokesman for Credit Suisse didn’t respond to a request for comment on the Irish business. Nomura warned of a possible $2 billion (€1.7 billion), while analysts have estimated that the hit to Credit Suisse may top $3 billion. When Archegos failed to meet the margin calls, investment banks started offloading about $20 billion of stocks on Friday that they held, linked to loans the hedge fund.

Source: The Irish Times March 31, 2021 05:10 UTC