ARCHEGOS LOSSES: UBS TAKES UNEXPECTED $774 MILLION HIT
UBS reported on Tuesday a net income of $1.8 billion for the first quarter, revealing that it had taken a considerable hit to earnings from the collapse of Archegos Capital Management.
The Swiss bank said that it had taken a $774 million hit to revenue as a result of Archegos’s default earlier in the quarter. The hedge fund was a client of UBS’s prime brokerage business.
UBS added that it had ended all exposure to Archegos and that any related losses in the second quarter would be “immaterial”.
