Department of Justice Investigating Archegos Collapse: Report

New York Post ^ | May 27, 2021 | Lydia Moynihan

[nickcarraway]

The US Department of Justice has reportedly launched a probe into this spring’s dramatic implosion of Archegos Capital Management, which slammed some of the world’s biggest banks with more than $10 billion in losses.

Federal prosecutors sent requests for information to some of the banks that conducted business with the massive but little-known family office run by disgraced financier Bill Hwang before its epic collapse in March, according to a Bloomberg report.

Hwang relied on massive leverage and risky derivatives to take concentrated positions. When the massive bets he’d made on ViacomCBS and Discovery went south, he failed to meet margin calls and his brokers tried to liquidate their positions — his collateral — as quickly as possible.

[married21]

Arch egos?

[Political Junkie Too]

I still wonder if Archegos was a part of the GameStop short squeeze and got caught. Bill Hwang has a prior history of illegal shorting, and previously worked for an investment firm that backed out of GameStop because of bad management, giving Hwang some knowledge of GameStop's vulnerability.

-PJ

[riverrunner]

10 billion spread over how many banks.

I would bet that it is a very small portion of the over all amount of money dealt with.

[srmanuel]

If one guy that average person has never heard of can cause this much damage you have to think they’re any number of other people out there who have bigger more dangerous positions in financial markets just waiting to cause a tsunami of financial loses...leading to who knows what.

[Political Junkie Too]

That's how Soros did it, but shorting national currencies and then causing a market crash.

-PJ