Credit Suisse continues to unload Archegos Discovery shares

Credit Suisse continues to unveil its positions after the explosion of Archegos Capital Management, traders reported to CNBC’s David Faber, putting more pressure on defeated media stocks.

The investment bank on Tuesday bought blocks of different classes of Discovery shares, Faber reported. The discovery was one of the actions that fell sharply in late March when the family office headed by hedge fund veteran Bill Hwang was unable to meet its margin demand. Discovery’s Class A shares fell more than 4% in extended trading.

Discovery, along with its other legacy ViacomCBS media player, saw its shares increase rapidly during the first months of the year, apparently bid upwards by the highly leveraged Archegos. Discovery’s Class A shares rose from $ 30 per share in late December to $ 77 per share in mid-March before deflating. They closed at $ 40.38 on Tuesday.

Credit Suisse was one of the banks most affected by Archegos ’trading risk. The bank reported $ 4.7 billion in operating losses and announced that two of its C-suite executives would step down.

Credit Suisse and other Wall Street banks will sell swap positions to hedge funds and family offices, allowing customers to gain exposure to shares even if the bank technically owns the shares. When the shares decline and the fund fails to meet its obligations, the bank may get caught up in the losses of the shares.