Banks scrambled to sell assets on behalf of Archegos Capital Management, which manages the assets of Bill Hwang, an investor. Archegos has emerged as the firm that sparked a fire sale of $20bn-worth of technology shares, after its trading losses led its banks to make margin calls. Baidu, China’s biggest search engine, and ViacomCBS, a media giant, were among the affected shares that slumped. Credit Suisse and Nomura, two banks, have warned that they could incur hefty losses from their dealings with Archegos.
The Federal Reserve said that on June 30th it would lift the remaining restrictions on banks from buying back shares and paying out dividends, measures it brought in during the covid-19 crisis. Banks may still face such curbs if they do not have the capital to pass the next round of stress tests.
South Africa’s central bank left its main interest rate unchanged at 3.5%, in contrast to central banks in Brazil, Russia and Turkey, which have all raised rates recently.
Voting closed among workers hoping to join a union at an Amazon warehouse in Alabama. The effort to unionise all the employees at one of the retailer’s facilities is a first, and adamantly opposed by the company.