Dougal Brech, global head of the prime-brokerage division that caters to hedge funds, has been suspended along with U.S. prime head Joshua Kurek and co-head of global equities Michael Caperonis, people familiar with the matter said. Douglas Lyons, global head of credit risk, will stay at the Tokyo-based firm but will be replaced by Patrick McGarry, said the people, who requested anonymity as the details aren’t public.
Nomura is among several global banks shaken by transactions with Archegos, an obscure investment firm set up to manage the fortune of trader Bill Hwang. Japan’s biggest brokerage, which lost some $2.9 billion on its dealings with Archegos, has hired external lawyers to conduct a “comprehensive, impartial review,” according to a presentation to investors Tuesday, and appointed a new head of its U.S. subsidiary earlier this week.