Nomura Holdings and Mizuho Financial Group are facing potential losses of more than $100 million following a series of failed stock deals by investment fund All Blue Capital.
All Blue, led by trader Matt Novak, made a series of bad short bets with multiple counterparties earlier this year and is reportedly unable to settle the trades, according to legal documents in New York and people familiar with the matter . The documents show that two units of the fund were placed into liquidation in the British Virgin Islands in March.
The fund’s inability to trade its bets set off a series of events that left Tokyo-based Nomura with a potential loss of ¥14 billion ($90 million), the people said.
