Banks involved in Archegos meltdown face DOJ probe - Bloomberg Law

·1 min read
FILE PHOTO: 888 7th Ave, a building that reportedly houses Archegos Capital is pictured in New York City

(Reuters) -U.S. investigators who focus on corporate collusion are examining how global banks handled multibillion-dollar trades with Bill Hwang's Archegos Capital Management, Bloomberg Law reported on Thursday.

At least part of the probe is being handled by the U.S. Department of Justice's (DOJ) antitrust division, the report said, citing people familiar with the matter. (https://bit.ly/3dcAMed)

Archegos, a family office run by former Tiger Asia manager Hwang, defaulted on margin calls in March, leaving banks nursing heavy losses and sparking a fire sale of shares including ViacomCBS and Discovery Inc.

The blowup cost big global banks including Credit Suisse, Nomura Holdings, Morgan Stanley and Deutsche Bank more than $10 billion in losses.

The banks declined to comment, while the DOJ did not immediately respond to a Reuters request for comment.

(Reporting by Niket Nishant and Sohini Podder in Bengaluru, Elizabeth Dilts Marshall and Matt Scuffham in New York; Editing by Devika Syamnath)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting