FSB warns on Archegos-style leverage

Isda AGM: Knot takes dim view of banks piling up leverage blind

Toppling money pile

A senior global regulator has fired a warning to banks that build up large leveraged exposures with little information on clients’ overall risk, after the collapse of Archegos Capital Management left banks reeling.

“We have seen that certain banks, particularly prime brokers, seem to be prepared to take large positions without having sufficient visibility into the total leverage of their counterparties,” said Klaas Knot, chair of the Financial Stability Board (FSB).

“I see similarities to the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here