Credit Suisse still downloads shares of Discovery from Archegos

Credit Suisse is still unraveling its positions from the inflation of Archegos Capital Management, traders told David Faber, CNBC, putting more pressure on a shattered media stock.

The investment bank was shopping blocks of various classes of Discovery shares on Tuesday, Faber reported. Discovery was one of the stocks that fell sharply at the end of March when the family office run by hedge fund veteran Bill Hwang could not meet its margin call. Discovery’s Class A shares fell more than 4% in extended trading.

Discovery, along with fellow media player ViacomCBS, saw the stock rise rapidly in the first few months of the year, apparently bidding upwards through the strong leverage Archegos. Discovery’s Class A stock rose from $ 30 a share at the end of December to $ 77 a share in mid-March before declining. They closed at $ 40.38 on Tuesday.

Credit Suisse was one of the banks hit hardest by Archegos’ dangerous trade. The bank reported a $ 4.7 billion loss in transaction costs and announced the resignation of two of its C-suite executives.

Credit Suisse and other Wall Street banks will sell swap positions to hedge funds and family offices so customers can gain exposure to a stock even though the bank technically owns the stock. When the stock falls and the fund does not meet its obligations, the bank can get stuck with the losses on the stocks.