The US Department of Justice is investigating Bill Hwang, who went bankrupt at the end of March, according to Bloomberg. His default caused banks to lose approximately $ 10 billion.
Manhattan federal prosecutors have sent inquiries to some banks that have worked with the investment firm, according to the agency. At the same time, the sources do not specify exactly what violations in the work Archegos Capital is suspected of.
In March, it was reported that the fund defaulted on margin requirements, after which a number of large banks put up for sale stakes associated with Archegos Capital. This led to a collapse in the quotes of companies, shares in which were owned through the fund by its owner, financier Bill Hwang. The companies whose securities participated in the sale – ViacomCBS, Discovery, Baidu, other IT and media companies in the United States and China – lost $ 33 billion in capitalization. Then banks Credit Suisse Group and Nomura Holdings said they could suffer significant financial losses. At the end of March, it became known that the investigation into the fund was launched by the US Securities and Exchange Commission (SEC), the US Financial Industry Control Agency (FINRA), and the British Financial Conduct Authority (FCA).