💥 Take #Archegos.
The family office used swap deals with several banks to build enormous, concentrated positions with borrowed money. But because each bank only saw its own dealings with Archegos, no one had a full picture of risks - until the trades collapsed and banks lost billions. 3/6
When the lights flicker… 💡
Take #Archegos in 2021. Out of sight from the regulators, this family office used extreme leverage to take massive positions in a handful of stocks. When markets turned, the banks financing these positions lost billions, sending shockwaves through the financial system. 4/5
Former employees of #Archegos Capital Management are seeking damages from lost salaries and bonuses. Five had already been awarded damages. More have stepped forward. A judge overseeing the case has given them priority over banks, owed billions. #stocks www.bnnbloomberg.ca/business/202...
Bill Hwang founder of #Archegos got 18 years and would have gotten a lot more if he didn't participate in other investigations.
#Citadel just lost their court motion to pause CAT fees. (news just broke Friday)
#marketReform #optionsTrading #stocks #invest
Bill Hwang, founder of Archegos, got 18 years for fraud that cost banks billions. His crime? Hiding massive leveraged bets that imploded when stocks fell.
Key takeaways: leverage can be dangerous, transparency is crucial, and investors should demand clear disclosures. #Archegos
The criminal conviction of Bill #Hwang in the collapse of #Archegos, the $36bn family office/hedge fund, tells banks two things: Something like this should never happen again, and there’s no way to guarantee this will never happen again. www.bloomberg.com/opinion/arti...
Neben Finanzskandalen wir #Archegos & #Greensill waren ihre illegalen und korrupten Kredite im Zusammenhang mit der Erschliessung der Gasvorkommen in der Provinz Cabo Delgado ein wichtiger Faktor für die Auslösung einer Schuldenkrise in #Mosambik. (7/x)
Nomura U.S. trading boss Jonathan Raiff, who stepped down after #Archegos, has joined the Verition hedge fund as head of fixed-income trading. He's the latest senior manager to leave the Japanese bank for a role elsewhere in the wake of the debacle....
Credit Suisse helped #Archegos take 'potentially catastrophic' risks before losing billions when it collapsed
Nomura’s most senior trader at its U.S. unit is stepping down, the latest shakeup at the Japanese bank after it lost almost $3 billion on trades with #Archegos Capital Management. Latest story via @business...
“I’ve never seen anything like this -- how quiet it was, how concentrated, and how fast it disappeared...This has to be one of the single greatest losses of personal wealth in history.” Absolute belter on #archegos from @Burtonkathy @LamoneyTom ...
Some of the world's biggest banks tried to come up with a way of working together so they could avoid billions of dollars of losses from #Archegos. But by Friday, it was everyone for themselves. Our story w/@sridinats @david_scheer ...
