US Justice Department starts probe on Archegos collapse, report says

Fox Business Flash top headlines for May 27

Check out what’s clicking on FoxBusiness.com.

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.

WHO IS ARCHEGOS FUND MANAGER BILL HWANG?

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  and Discovery Inc  had been meant to act as collateral.

TickerSecurityLastChangeChange %
VIACVIACOMCBS, INC.43.15+0.69+1.63%
TickerSecurityLastChangeChange %
DISCADISCOVERY, INC.32.52+0.70+2.20%

Credit Suisse lost more than $5 billion and Japan's Nomura lost almost $3 billion. U.S. banks such as Goldman Sachs which also acted as brokers for Archegos, suffered much lower losses.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

A spokesperson for the U.S. attorney's office in Manhattan declined to comment. Archegos could not be reached for a comment.

Source: Read Full Article