Banks lead Wall Street lower on hedge fund default concerns

By Devik Jain and Medha Singh (Reuters) – Wall Street’s main indexes fell on Monday after a surge in the previous session, as global banks said they faced potential losses of billion of dollars from a hedge fund’s default on margin calls. Nomura and Credit Suisse warned of significant hit after the U.S. hedge fund, named by sources as Archegos Capital, defaulted, hitting shares in some big media and Chinese technology companies. Shares in Morgan Stanley fell about 4% after the Financial Times reported it had also sold billions of shares, while the banks index shed about 3%. The news has raised…

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