Why did Archegos go under?

Archegos was little known until last week, when a slump in the value of its leveraged equity bets sparked a liquidity crisis at the fund which in turn set off a scramble among Wall Street banks that had financed the trades to start unwinding them.

Is Archegos out of business?

On March 26, 2021, Archegos defaulted on margin calls from several global investment banks, including Credit Suisse and Nomura Holdings, as well as Goldman Sachs and Morgan Stanley….Archegos Capital Management.

Did Archegos lose all money?

Archegos Capital Management imploded last month with all the force of a collapsing star, lopping off billions from the trading profits of some of the world’s biggest investment banks. After Tuesday’s disclosures by Swiss giant UBS and Japanese lender Nomura, the hit to banks so far is roughly $10 billion.

Who owns Archegos fund?

Bill Hwang
New York-based Archegos cost six banks (Credit Suisse CS -0.9\% , Nomura, Morgan Stanley MS -2.1\% , UBS, MUFG, and Mizuho) more than $10 billion when it defaulted on a margin call in March. The firm was created by Bill Hwang as a family office, essentially a private company to manage his wealth.

Did Archegos lose money?

How much did UBS lose on Archegos?

UBS reported an unexpected $774 million loss from the collapse of Archegos, taking the total hit to banks from the stricken family office beyond $10 billion.

What happened with Credit Suisse and Archegos?

Credit Suisse finds incompetence but no criminal conduct in Archegos debacle. Credit Suisse suffered humiliation and shareholder wrath this year when it lost $5.5 billion from the collapse of the Archegos Capital Management investment fund.

How did Archegos lose money?

Is Archegos a hedge fund?

But Archegos was not a hedge fund. It was a single family office, run by one individual: albeit one that had assets in excess of your average, mid-sized hedge fund.

Which banks suffered from Archegos?

Similar to Morgan Stanley, UBS incurred a relatively small loss in comparison to its Swiss counterpart Credit Suisse of $861 million, while MUFG Securities logged trading losses of $270 million after it closed all positions with Archegos. Deutsche Bank was arguably the biggest winner of the collapse of Archegos.

Who lost money Archegos?

Here in suburban Tenafly, 15 miles from midtown Manhattan, few would guess that this unassuming figure is none other than Bill Hwang — the man who just lost more than $20 billion. “Billion with a B?” gasps a neighbor down the block, when told of the epic blowup at Hwang’s Archegos Capital Management.

How much money did Credit Suisse lose on Archegos?

Credit Suisse report into $5.5 billion Archegos loss shows bank has a massive culture problem.