Global banks warn of possible losses from hedge fund default

BERLIN (AP) — Swiss bank Credit Suisse says it may face a “highly significant” loss resulting from a default by a U.S.-based hedge fund on margin calls that it and other banks made last week. The bank hasn’t provided further details. Japan’s Nomura also says it could face a loss of $2 billion due to an event with a U.S. client it didn’t identify. The Financial Times is reporting that investment firm Archegos Capital was hit hard last week after shares in US. media group ViacomCBS tumbled. A margin call is triggered when investors borrow using their stock portfolio as collateral and have to make up the balance required by banks when the share prices fall and the collateral is worth less.