XLF - Financial sector hanging tough amid Archegos tumult: At the Open

Prime brokers are suddenly the focus of Wall Street after the implosion of Archegos Capital and its impact on banks that offered the hedge fund leverage.The question of how a family office and a hedge fund is up in the air, but the pressure is on stock index futures, with the market pointing to a lower opening.Goldman Sachs (GS) and Morgan Stanley (MS) were quick to exit positions Friday, but other banks were not so quick off the mark.Credit Suisse (CS) and Nomura (NMR) have informed the market that they will take a material hit due to their exposure.BofA Securities analyst Alastair Ryan downgraded CS to Neutral and reduced his 2021 forecast for the bank and price target due to the losses on the liquidation."We believe its capital cushion has likely been reduced to the point where its buyback is directly affected," Ryan wrote in a note to clients.Credit Suisse

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Financial sector hanging tough amid Archegos tumult: At the Open