The dramatic implosion of Archegos Capital Management has turned the spotlight on family offices.
These usually conservative financial institutions are effectively unregulated, but that can be risky.
Archegos blew an estimated $10 billion hole in some banks, using leverage and derivatives.
Family offices sound innocent, but one just blew an estimated $10 billion hole in some of the world s biggest banks.
Bill Hwang s Archegos Capital Management was a large investment firm funding risky bets through lots of borrowing. But it was structured as a family office , a type of financial institution designed to preserve and grow a rich person s wealth, meaning it went largely unnoticed.