UBS puts $774 million off drama with Billy Hwangs Archegos

In the first quarter, the Swiss bank UBS deducted its investments in the fallen US fund Archegos with a $774 million increase in profits. The counter stands at $10 billion in losses in large banking banks due to the bankruptcy Archegos.

The profit at UBS was therefore reduced by $434, reports the group Tuesday. The charge is greater than previously expected by analysts. UBS has now completely withdrawn from Archegos, it expects not to report any damage to the transactions in the second quarter.

UBS was one of about six banks that lent money to Archegos to hold large, concentrated positions in shares.

Switzerlands largest bank, measured by assets, reported 14% more profit to $1.82 billion Tuesday, mainly due to a sharp increase in asset management and investment revenues in strong stock markets.

Topman Ralph Hamers, from the Dutch ING, showed himself disappointed. A detailed examination of the relevant risk management processes is underway, he explains in a statement.

Hamers argues that the bank is revising its systems to avoid situations like Archegos.

UBS improved its capital position in the first quarter, allowing the investment bank to bear the loss, he argues.

Archegos, a family office of investor Bill Hwang, caused major damage to investment banks on Wall Street, when it was unable to meet its payment obligations in March.

Credit Suisse lost $5.5 billion, Nomura hits about $2 billion, Morgan Stanley saw $911 million evaporate.