TOKYO (BLOOMBERG) – Nomura Holdings suspended a group of senior executives at its investment bank and replaced a top risk official as it reels from billions of dollars of losses on trades with Archegos Capital Management.

Dougal Brech, global head of the prime-brokerage division that caters to hedge funds, has been suspended along with US 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 US$2.9 billion (S$3.85 billion) on its dealings with Archegos, has hired external lawyers to conduct a “comprehensive, impartial review,” according to a presentation to investors on Tuesday (April 27), and appointed a new head of its US subsidiary earlier this week.

The Financial Times reported Mr Brech’s suspension earlier. Aoife Reynolds, a spokeswoman for Nomura in London, declined to comment. Brech also declined to comment. Caperonis, Kurek and Lyons did not respond to requests for comment via LinkedIn.

Nomura’s losses from trades with Archegos exceed the US$2 billion it flagged a month ago and have complicated its global ambitions. The bank logged a first-quarter net loss of 155.4 billion yen (S$1.89 billion), its biggest since the global financial crisis.