Finance

Wall Street banks get prosecutor requests for information about Archegos

Federal prosecutors in New York have requested information about Archegos Capital Management from banks across Wall Street, according to people familiar with the matter.

Banks that lent to Archegos, including Credit Suisse, UBS, Goldman Sachs and Morgan Stanley, have been contacted for information, the people said.

It couldn’t be determined on 26 May what the precise focus of the inquiry was. Law enforcement authorities often open investigations when market shocks are caused by a single or small group of traders.

Archegos, the family investment firm for former hedge-fund manager Bill Hwang, hasn’t been contacted by the Manhattan US attorney’s office, according to a person familiar with the matter.

The firm’s collapse in March triggered more than $10bn in losses across Wall Street, in one of the biggest meltdowns since the financial crisis. After prices reversed on some of Archegos’s biggest bets, the firm couldn’t meet margin calls, causing banks to unwind Archegos’s positions.

Bloomberg News earlier reported that federal prosecutors had asked banks for information about Archegos.

—Dave Michaels, Corinne Ramey and Ben Eisen contributed to this article.

Write to Margot Patrick at [email protected], Emily Glazer at [email protected] and Juliet Chung at [email protected]

This article was published by Dow Jones Newswires

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