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by Tyler Durden
Wednesday, May 05, 2021 - 02:45 PM
The other day, we learned that Credit Suisse, which was left on the hook for $5 billion after dumping blocks of stocks owned by its prime brokerage on behalf of Archegos Capital Management, earned just $17MM in fees from its relationship with Archegos, revealing that
the fund was a 300x leveraged time bomb for Credit Suisse.
This helps explain why Lara Warner, the bank s former risk chief, apparently wasn t aware of the details of the relationship until days before the blowup: Archegos simply wasn t an important enough client.
Now, hours after UBS CEO Ralph Hamers and Chairman Axel Weber launched an apology tour to investors after revealing a surprise loss tied to Archegos, the FT reports that Archegos is finally preparing to officially file for bankruptcy protection as Credit Suisse and the other half dozen prime brokers who also worked with the fund threaten lawsuits to try and recover whatever they can to help compensate for
Archegos prepares for insolvency as banks seek compensation: Financial Times
05/05/2021 15:54
(Reuters) - Archegos Capital Management, the family office run by former Tiger Asia manager Bill Hwang, is preparing for insolvency as banks involved in financing its trades seek to recoup some of their losses, the Financial Times reported on Wednesday.
Archegos has hired restructuring advisers to assess the potential legal claims from banks and to plan for a possible winding down of its operations, the report said, citing two people familiar with the matter. (https://on.ft.com/33eR2Gl)
The family office s meltdown was triggered after ViacomCBS, a company Archegos was heavily exposed to, announced a stock offering in March. A slump in the media company s share price alarmed the banks, which called on the fund for more collateral.
Archegos Capital Management, the family office run by former Tiger Asia manager Bill Hwang, is preparing for insolvency as banks involved in financing its trades seek to recoup some of their losses, the Financial Times reported on Wednesday.
Archegos has hired restructuring advisers to assess the potential legal claims from banks and to plan for a possible winding down of its operations, the report said, citing two people familiar with the matter.
The family office s meltdown was triggered after ViacomCBS , a company Archegos was heavily exposed to, announced a stock offering in March. A slump in the media company s share price alarmed the banks, which called on the fund for more collateral.
Archegos prepares for insolvency: Financial Times
Reuters
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Archegos Capital Management, the family office run by former Tiger Asia manager Bill Hwang, is preparing for insolvency as banks involved in financing its trades seek to recoup some of their losses, the
Financial Times reported.
Archegos has hired restructuring advisers to assess the potential legal claims from banks and to plan for a possible winding down of its operations, the report said, citing two people familiar with the matter.
Credit Suisse and Nomura face heavy losses from the implosion of Archegos.
Bloomberg
The family office’s meltdown was triggered after ViacomCBS , a company Archegos was heavily exposed to, announced a stock offering in March. A slump in the media company’s share price alarmed the banks, which called on the fund for more collateral.