JP Morgan warns hedge funds to expect intraday margin calls
US bank may demand variation margin ‘up to seven’ times a day after Archegos default
(www.risk.net)
🚔 Crime & Corruption 💸
Comments (14)
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Easy there, tiger. Bad attribution of a real effect, the cause is NSCC-2021-002, which requires hourly reporting for securities traded on margin. Has nothing to do with Archegos other than to make a clickbait-y headline.
Banks are making sure they're not going to get stuck holding the bag for bad bets made by the investment companies they're backing.
Spez: I totally forgot. Risk.net were the ones that gave Kenny G a lifetime achievement award in Feb. Consider that a source owned by the enemy.
Fair enough. I went through several articles before I found this one. I'll be a bit more diligent selecting the article to link to next time.
So does this mean banks may run out of money at any time?
Wells Fargo is closing personal lines of credit as well.
https://www.cnbc.com/2021/07/09/wells-fargo-closed-your-personal-line-of-credit-now-what-do-you-do.html
Shit, hopefully our mortgage gets approved next month 😬
Personal LOC is unsecured debt, a mortage is backed by an asset.
Assets are what banks are banking on right now. They oughta be fighting for that business.
Oh awesome, gotta get out of Illinois!
It means that, if you're a hedge fund, your credit and your good name ain't so good around here no more.
Well well well .... Arch Egos has fallen by the way side a second time.
There were involved in GME, was it not?
No. Viacom. But there is a knock-on effect: Credit Suisse and Nomura ended up holding the bag. That's causing bank stocks to drop and selloffs to cover the losses, depressing the value of some of the assets the Hedge Funds are using as collateral to short GME.
Is this where I'm supposed to say I have diamond hands? Or my tits are jacked? I can never remember which one is right.
Great, thanks for the elaboration! Truth be told: I am chuckling!