Credit Suisse continues to download shares of Discovery from Archegos

Banca Credit Suisse.

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Credit Suisse is still revealing its positions from the Archegos Capital Management explosion, traders told CNBC’s David Faber, putting more pressure on a battered media stock.

The investment bank will buy blocks of different Discovery shares on Tuesday, Faber reported. Discovery was one of the stocks that fell sharply in late March, when the family office run by hedge fund veteran Bill Hwang failed to meet its margin demand. Discovery Class A shares fell more than 4% in extended transactions.

Discovery, along with its fellow media player ViacomCBS, saw its shares grow rapidly in the first few months of the year, apparently auctioned up by Archegos with big leverage. Discovery Class A shares rose from $ 30 per share in late December to $ 77 per share in mid-March before deflating. They closed Tuesday at $ 40.38.

Credit Suisse was one of the banks most affected by Archegos’ risky transactions. The bank reported a $ 4.7 billion tax on transaction losses and announced that two of its C-suite directors are resigning.

Credit Suisse and other Wall Street banks will sell swap positions to hedge funds and family offices, allowing customers to gain exposure to a share, even if the bank technically owns the shares. When the stock decreases and the fund does not meet its obligations, the bank may be blocked with stock losses.

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