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      Nomura Announces Possible $2 Billion Loss From "An Event That Occurred on Friday March 26"

      Published: just now

      Nomura Announces Possible $2 Billion Loss From "An Event That Occurred on Friday March 26"

      March 29, 2021 - A press release from Nomura Holdings (at 00:00 GMT) has just been issued with the following statement:

      Nomura Holdings, Inc. today announced that on March 26, 2021, an event occurred that could subject one of its US subsidiaries to a significant loss arising from transactions with a US client.

      Nomura is currently evaluating the extent of the possible loss and the impact it could have on its consolidated financial results. The estimated amount of the claim against the client is approximately $2 billion based on market prices as of March 26. This estimate is subject to change depending on unwinding of the transactions and fluctuations in market prices. Nomura will continue to take the appropriate steps to address this issue and make a further disclosure once the impact of the potential loss has been determined.

      As of the end of December 2020, Nomura maintained a consolidated Common Equity Tier 1 ratio of over 17 percent, which is substantially higher than the minimum regulatory requirement. Accordingly, there will be no issues related to the operations or financial soundness of Nomura Holdings or its US subsidiary.

      Nomura further announced that "it has reached an agreement with the underwriters of the US dollar senior notes (TLAC-eligible debt) priced on March 23, 2021, to cancel the issuance due to an event that occurred after pricing that could impact the company’s consolidated financial results.

      Nomura intends to consider issuing similar notes after the impact on its consolidated financial results is known and has been properly disclosed."

      Over this past weekend it was reported by Bloomberg and other news outlets that Archegos Capital Management was behind the big market moves in some media and China stocks on Friday as the fund was forced to sell up to $20 billion in shares after some positions moved against the highly leveraged firm run by former Tiger Management trader Bill Hwang. Nomura has not confirmed that "the event" is related to Archegos Capital Management.

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