Goldman Said to See Immaterial Effect From Archegos

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Goldman Sachs Group Inc. is telling shareholders and clients that the unwinding of trades by Archegos Capital Management will likely have an immaterial impact on its financial results, a person familiar with the matter said.

The New York-based bank’s loans to Archegos were well collateralized and Goldman was among the first to begin reducing its exposure, the person said, asking not to be identified because the information is private. The bank has exited most of its Archegos-related positions, the person said.

A media representative at Goldman declined to comment.

Goldman Said to See Immaterial Effect From Archegos

Archegos, founded by former Tiger Management trader Bill Hwang, is at the center of a margin call that led to the forced liquidation of more than $20 billion in shares on Friday, according to people familiar with the transactions. The episode has triggered a hunt for more information by shareholders and clients of the banks that financed Archegos’s trades.

Nomura Holdings Inc. warned of a “significant” potential loss from an unnamed U.S. client on Monday, saying that the estimated amount of the claim was about $2 billion. That client is Archegos, according to people familiar with the matter. Credit Suisse Group AG said on Monday that it could face a “highly significant” loss related to margin calls on a U.S.-based hedge fund that it didn’t name.

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