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Layman here. Why was Credit Suisse left holding the bag instead of the losses being distributed between the banks? Was it because they were the broker?
by ashconnor 6y ago
Layman here. Why was Credit Suisse left holding the bag instead of the losses being distributed between the banks? Was it because they were the broker?
- kristjansson 6y agoThe other firms were better at listening to the music, and knew that it had stopped?
- herodoturtle 6y agoThis comment reminded me of that awesome scene by Jeremy Irons in Margin Call :-)
- arthurcolle 6y agoBe first, be smarter or cheat
- lotsofpulp 6y agohttps://www.youtube.com/watch?v=ag14Ao_xO4c https://www.youtube.com/watch?v=ag14Ao_xO4c
- tedunangst 6y agoBecause they were last to sell.
- QuestionC 6y agoThere wasn't a single broker. Each of these banks (8 in total I think?) all let Archgeos separately secure this levered up high-risk position. The margin call references are quite apt. I believe it was a literal margin call. Goldman and Morgan Stanley forced Archgeos to square up their position, which forced Archgeos to liquidate their stock, which drove down the stock, which left Credit Suisse (who had been hoping for the banks to slowly unwind the position) in a terrible spot.