Sign up for myFT Daily Digest to be the first to hear about world news.
Hello. This article is an on-site version of our FirstFT newsletter. Subscribe to our Asia, Europe / Africa or Americas edition to receive it directly to your inbox every morning of the week
Employees of Archegos Capital Management face losses of around half a billion dollars after the value of a deferred compensation plan put in place by the company collapses along with its other investments.
The family office headed by Bill Hwang has yet to release the money it owes to former employees, who saw the value of their deferred bonuses climb to around $ 500 million before the fall of Archegos, according to two sources close to the cabinet.
Archegos sent shockwaves through global markets in March when he was forced to unwind several highly leveraged trades made using derivatives known as total return swaps. The episode left the banks he traded with, including Credit Suisse and Morgan Stanley, in losses of more than $ 10 billion.
More misfortunes for Credit Suisse: Swiss lender to be tried for role in Mozambique’s $ 2 billion “tuna bonds” affair, a scandal resulting from a 2013 deal for the country to borrow from international investors, allegedly to finance maritime projects , including a state tuna fishery, before investments in gas at sea.
Thanks for reading FirstFT Europe / Africa today. It’s always nice to hear from our readers. What do you think of the latest development of the Archegos fallout? Let me know or share any other comments you have on the newsletter with me at [email protected]. – Jennifer
Five other articles in the news
1. Conservative president accused of mixing business and political interests Charlotte Leslie, a former Tory MP at the center of a struggle for donor influence in the UK’s ruling party, accused Co-Chair Ben Elliot of mixing his political role with business interests. The donor Mohamed Amersi was a client of Quintessentially, the “concierge” service of which Elliot is co-owner.
2. Tencent to fight gambling addiction The Chinese internet group announced restrictions on how long minors can play its games online after coming under intense pressure from state media, which then called the games “spiritual opium”. that Beijing’s latest attack on technology brought industry shares down.
3. New York Governor Sexually Harassed Women, Report Says Joe Biden called on Andrew Cuomo to resign after an investigation found the governor of New York City violated federal and state laws by sexually harassing scores of women. Letitia James, the state attorney general who appointed the investigators, said the investigation revealed a “deeply disturbing but clear picture” of a toxic workplace.
4. Missing Belarusian activist found dead in Kiev park Vitaly Shishov, who headed an organization helping Belarusians fleeing persecution, was found hanging from a tree near his home in Ukraine yesterday. Local police said his death could have passed for suicide.
5. Jair Bolsonaro investigated over allegations of electoral fraud The Brazilian president’s legal problems have escalated after a court opened an investigation into his unfounded warnings of voter fraud in next year’s election, which could lead to his disqualification.
Summary of the Tokyo Olympics
Simone Bilès won a bronze medal on beam, a week after retiring from several competitions to focus on her sanity.
American Sydney McLaughlin won gold in the women’s 400-meter hurdles, setting a world record of 51.46 seconds.
Games is getting closer to the biggest sporting event in the world. Maybe one day we will see video games at the Olympics.
The International Olympic Committee is investigating the Belarus sports federation after sprinter Krystsina Tsimanouskaya accused her country’s authorities of trying to force her to leave Tokyo. She was seen on a flight to Vienna today.
Skateboard The park competition opens today and will feature one of the youngest fields of competitors. (FT, CNN)
Add ‘Tokyo Olympics” to myFT for all of our Games coverage, and don’t miss our “Table of alternative medals”.
Border restrictions will not prevent Covid-19 from entering the UKscientists have warned. The England arrivals test assessor said he had only accredited 6% of the private testing providers listed by the government.
Up to £ 5 billion in the UK state guaranteed emergency loans may not be reimbursed. A “refusal” to develop contingency plans was the “most unforgivable” element of the country’s education policy in the event of a pandemic, according to a think tank.
Beijing shutting down travel links to stem a rapidly spreading outbreak of the Delta variant that officials say is linked to a flight from Russia.
the White House announced a new three-month eviction moratorium that will protect about 90% of U.S. tenants.
Without the correct absorptive capacity – the infrastructure to get gun shots – Covid-19 vaccines will be wasted, writes Tony Blair, former British Prime Minister. Register now for our Coronavirus Business Update newsletter and follow the latest developments on our live blog.
The day to come
PMI Services The Eurozone, France, Germany, India, Japan, the United Kingdom and the United States will release the figures for the Purchasing Managers Index today. The rush for manufacturing and services data will provide further insight into the health of the economic recovery after Covid.
Business profits Japanese companies SoftBank, Sony, Honda and Toyota, as well as Uber, game publisher EA and online marketplace Etsy are reporting. Read our full list of earnings.
Beirut explosion anniversary August 4 marks one year since the explosion which killed at least 200 people. As the fight for justice continues, Lebanese prosecutors seek to remove the immunities of senior officials.
What else do we read
Afghanistan after the United States Kabul is bracing for a siege after the US retreat led the Taliban to launch attacks across the country, undermining its incentive to negotiate a political settlement. The question now is whether the strength of the Islamist insurgents makes the fall of the government inevitable.
Spiraling real estate prices in the United States Policymakers are increasingly concerned about rising prices for homeowners and tenants amid the biggest global housing price spike in at least two decades. Read the second installment in our series on the pandemic-fueled wave that has rekindled fears of affordability.
China’s massive lending wave China is the world’s largest lender to governments. From 2008 to 19, the Development Bank of China and the Import-Export Bank of China lent $ 462 billion. However, the terms of its loans to sovereign borrowers have remained secret. Until now.
Recommended newsletters for you
Marsh Notes – An expert opinion on the intersection of money and power in American politics. register here
Trade secrets – An essential on the evolution of international trade and globalization. register here