Free Consultation: (800) 259-9010
Tap Here to Call Us

Articles Tagged with Archegos Capital

Bank Losses From Archegos Collapse Exceed $10B After UBS and Morgan Stanley Report $861M and $911M Losses, Respectively

Published on: May 5, 2021 | by Shepherd Smith Edwards & Kantas, LLP

More Fallout From Hedge Fund’s Sell-Off

A month after Archegos Capital Management (Archegos), a hedge fund and the family office of Bill Hwang, liquidated more than $30 Billion in equities when banks ordered it to post more collateral after borrowing on margin, news about the fallout continues.

UBS Group has finally disclosed that it lost $861 Million as a result of exposure to Archegos. Morgan Stanley also recently announced that it sustained $644 Million in losses from a “credit event” and $267 Million in related trading involving Archegos.

Archegos Capital’s Massive Forced Liquidation is a Hard Hit to Global Banks Credit Suisse, Nomura and Others

Published on: April 1, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Big Banks Anticipate Losses in the Billions

Last week, Archegos Capital Management, the $10 billion hedge fund founded by Bill Hwang, was forced to liquidate over $30 billion in equities including millions of shares in ViacomCBS, media company Discovery, and a number of Chinese tech companies.

The move came after Archegos, which had borrowed on margin while using derivatives, was met with demands by banks to post greater collateral so as to minimize losses.