Archegos Capital Management collapses, Goldman Sachs suffers debt of around $800 billion
After the collapse of investment fund Archegos Capital Management earlier last month, the total amount of margin debt incurred industry-wide by Goldman Sachs Group Inc is around $800 billion, which is an increase of approximately $300-billion over the past year.
While addressing a virtual meeting organized on Monday by the Economic Club of New York, Goldman Sachs Group Inc’s President and Chief Operating Officer John Waldron stated that the companies executives are busy keeping a track of the total amount of loans borrowed on margin.
Goldman Sachs was one of those half-dozen banks that lent money to Archegos, which comprises large holdings of companies and was found short when the stock price of one of the companies, ViacomCBS, fell acutely. Waldron also added that the impact of the collapse was inconsequential to the bank’s bottom line.
It was reported by Credit Suisse, the Japanese bank Nomura and Morgan Stanley that the total losses of the collapse amounted to around $7 billion.