Why was Archegos worse than the Fed’s five-fund stress test?
Some believe Credit Suisse was an outlier, but others say the CCAR results underestimated risks
Since the collapse of Archegos Capital Management in March 2021 triggered losses of more than $10 billion for its prime brokers, supervisors around the world have been responding to perceived gaps in the bank regulatory system that might have allowed the failure to happen. Part of the US Federal Reserve’s response was to introduce a new exploratory scenario in this year’s supervisory stress-test process.
The results were published at the end of June, but they’ve left counterparty risk experts
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