GS - Here's How the Banks in the Archegos Blowup Fared
At first, March 25 seemed like a typical day in the market. The S&P 500 would post a measly decline and everything looked normal on the surface. However, it was anything but normal. By the close of trading, shares of companies like ViacomCBS , Vipshop Holdings , and Tencent Music would have plunged by 34%, 30%, and 35%, respectively, over just a few days.
Stocks regularly experience volatility, and the ones mentioned had all enjoyed steep rises since the beginning of 2021, so corrections at some point were to be expected. However, when these stocks came back down, Archegos Capital Management lost its entire $20 billion in value due to its highly leveraged bets on those companies and others like them.
The result of this sent shockwaves through the financial world as many of Archegos' prime lenders were left scrambling to find buyers for these stocks. Big banks like Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS) were able to race ahead of the panic and got out of the situation relatively unscathed. Banks like Credit Suisse (NYSE: CS) and Nomura Holdings (NYSE: NMR) weren't so lucky.
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Here's How the Banks in the Archegos Blowup Fared