Nomura and Credit Suisse warned on Monday they were facing big losses after a U.S. hedge fund, named by sources as Archegos Capital, defaulted on margin calls, putting investors on edge about who else had been caught out, Reuters reported. Losses at Archegos Capital Management, run by former Tiger Asia manager Bill Hwang, had triggered a fire sale of stocks on Friday. Nomura said it faced a possible $2 billion loss due to transactions with a U.S. client while Credit Suisse said a default on margin calls by a U.S.-based fund could be “highly significant and material” to its first-quarter results. Credit Suisse said that a fund had “defaulted on margin calls” to it and other banks, meaning they were now in the process of exiting these positions. Nomura shares closed down 16.3%, a record one-day drop, while Credit Suisse shares were down 14%, their biggest fall in a year. Deutsche Bank was down 5% while UBS was 3.8% lower. UBS had no immediate comment on their stock prices or exposure to Archegos. Deutsche’s Archegos exposure was a fraction of what others have, a source familiar with the matter said, adding that the German bank had not incurred any losses and was in the process of managing its position. Switzerland’s financial regulator said on Monday it was aware of the international hedge fund case and in touch with Credit Suisse about it. The Swiss regulator also said several banks and locations internationally were involved. Read more.