© Reuters. FILE PHOTO: 888 7th Ave, a building that reportedly houses Archegos Capital is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., March 29, 2021. REUTERS/Carlo Allegri
(Reuters) – 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 https://bloom.bg/2QVsCyV, citing people familiar with the matter.
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 (NASDAQ:) and Discovery (NASDAQ:) Inc, had been meant to act as collateral.
Credit Suisse (SIX:) lost more than $5 billion and Japan’s Nomura lost almost $3 billion. U.S. banks such as Goldman Sachs (NYSE:), which also acted as brokers for Archegos, suffered much lower losses.
A spokesperson for the U.S. attorney’s office in Manhattan declined to comment. Archegos could not be reached for a comment.
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