Nomura said its total loss from the implosion of Archegos Capital would hit almost $2.9bn, as people close to the Japanese bank said it had indefinitely suspended its global head of prime brokerage operations.
The financial blow to the country’s biggest brokerage is considerably greater than the approximately $2bn loss that Nomura initially flagged when the debacle involving the highly leveraged family office first came to light in late March.
The losses from Bill Hwang’s Archegos, which Nomura has not officially named and refers to as “a US client”, drove the bank to its biggest quarterly loss since the 2008 global financial crisis. It has also prompted Nomura to make pledges that it would fortify its risk management systems.