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Japanese bank Nomura said on Monday it was facing a loss of $ 2 billion.
The financial blow, he said in a statement, came from “a significant loss resulting from transactions with a US customer.” The company declined to name the client.
Nomura said it will no longer issue senior US dollar notes, noting that “an event that arises after pricing could impact the company’s consolidated financial results,” according to Reuters.
Following the news, Nomura shares were trading down 15% on Monday morning.
The loss follows a crazy week for markets dominated by a reported liquidation of positions held by Archegos Capital Management, an investment firm headed by Tiger Asia founder Bill Hwang. The liquidation appears to have been carried out by Goldman Sachs and Morgan Stanley.
The two investment banks have sold billions of dollars in Chinese media and stocks, with ViacomCBS and Discovery falling 35% due to the massive sales. Chinese companies Tencent, Baidu and Vipshop also saw a big drop. Market watchers told The Wall Street Journal that the “scale and speed” of the sale was “unprecedented.”
Despite the sell-off, the market saw a last-minute rally on Friday, with the Dow Jones finishing 450 points and the S&P 500 closing at a record high.
Nomura said the loss of $ 2 billion is not expected to impact operations.
“At the end of December 2020, Nomura maintained a consolidated Common Equity Tier 1 ratio of over 17 percent, which is significantly above the minimum regulatory requirement,” the statement continued. “Therefore, there will be no issues related to the operations or the financial strength of Nomura Holdings or its US subsidiary.”
Nomura operates in 30 countries around the world, with total assets of $ 432.2 billion.
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