888 7th Ave, a building that reportedly houses Archegos Capital is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., March 29, 2021. REUTERS/Carlo Allegri
The U.S. Department of Justice is investigating the collapse of Bill Hwang’s Archegos Capital Management, which cost big global banks more than $10 billion in losses, Bloomberg News reported on Wednesday.
Federal prosecutors in Manhattan sent requests for information to some banks that had worked with the investment firm, the report said, citing people familiar with the matter.
It is unclear what potential violations or entities were being examined, the report added
Archegos, a family office run by ex-Tiger Asia manager Bill Hwang, defaulted on margin calls in March, which left banks nursing heavy losses after a fire sale of shares, including ViacomCBS (VIAC.O) and Discovery Inc (DISCA.O), had been meant to act as collateral. read more
Credit Suisse (CSGN.S) lost more than $5 billion and Japan’s Nomura (8604.T) lost almost $3 billion. U.S. banks such as Goldman Sachs (GS.N), which also acted as brokers for Archegos, suffered much lower losses.
A spokesperson for the U.S. attorney’s office in Manhattan declined to comment. Archegos could not be reached for a comment.
Our Standards: The Thomson Reuters Trust Principles.
Amazon secured a key early win as a federal judge blocked New York from enforcing…
The Enthuse Foundation has revealed the finalists for its 7th Annual Women Founders Pitch Competition,…
The Marcus Evans 2nd Edition Model Risk Management, Canada conference taking place in Toronto, Canada…
Economists say Shanghai is strengthening its role as China’s reform engine, accelerating innovation and global…
U.S. shoppers are set to spend nearly $80 billion this Black Friday and Cyber Monday,…
Waiken has unveiled a US$450 million investment plan through 2031 to strengthen its entertainment and…