UBS - Justice Department starts investigation into Archegos - Bloomberg

The blowup of Bill Hwang's Archegos Capital Management in March is now being investigated by the Justice Department,  Bloomberg reports, citing people familiar with the matter.Bill Hwang lost $8B in 10 days in late March, when leveraged bets on companies including ViacomCBS and Baidu soured.Archegos has not been accused of breaking any laws, however, federal prosecutors in Manhattan sent requests for information to the banks that suffered major losses as a result of Archegos not being able to meet margin calls from its highly leveraged bets, Bloomberg said.Credit Suisse ([[CS]] +1.6%) took a $4.7B hit and Nomura ([[NMR]] +0.4%) estimates $2.85B in losses from Archegos's bad bets made through their prime brokerage units. Other banks that reported losses from the incident include Morgan Stanley (MS) and UBS (UBS).Since the March implosion, the SEC launched a preliminary investigation into Hwang and since have explored how to mitigate the risk of the same derivative

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Justice Department starts investigation into Archegos - Bloomberg