Archegos Capital Management's collapse led to approximately $10 billion in losses for Wall Street banks.
Bill Hwang, founder of Archegos Capital Management, found guilty of criminal charges related to firm's collapse in two Manhattan federal court trials.
Collapse cost shareholders $100 billion and left major banks with $10 billion in losses.
Hwang charged with 11 counts of securities fraud, wire fraud, conspiracy, racketeering and market manipulation.
If found guilty, Hwang and Halligan could face up to 20 years in prison under federal sentencing guidelines.
Jury delivered verdicts against Hwang and co-defendant Patrick Halligan after combined two-month trial period.
Prosecutors allege Archegos used 'total return swaps' to gain exposure to stocks without ownership while lying about positions.
Sudden collapse caused seismic market effect due to Hwang's large positions in ViacomCBS, Tencent and Discovery.
Bill Hwang, the founder of Archegos Capital Management, was found guilty of criminal charges related to the collapse of his firm in two separate trials by Manhattan federal courts. The jury delivered verdicts against Hwang and his co-defendant, former CFO Patrick Halligan. The trials took place over a combined period of two months and featured testimony from multiple prosecution witnesses and former Archegos employees.
Archegos Capital Management's collapse led to approximately $10 billion in losses for Wall Street banks. Hwang was charged with 11 counts of securities fraud, wire fraud, conspiracy, racketeering and market manipulation. The jury found him guilty on 10 charges including securities fraud, wire fraud and conspiracy.
The sudden collapse of Archegos Capital Management in March 2021 caused a seismic effect on the market due to Hwang's large positions in ViacomCBS, Tencent and Discovery. The collapse cost shareholders $100 billion and left major banks with $10 billion in losses.
Prosecutors allege that Archegos used financial instruments called 'total return swaps' to gain exposure to stocks without owning them while lying to banks about its massive positions. If found guilty, Hwang and Halligan could face up to 20 years in prison under federal sentencing guidelines.
The collapse of Archegos Capital Management serves as a reminder of the vulnerabilities that persist in the financial system.
Bill Hwang's so-called family office imploded in March 2021, causing a brief but acute market freakout.
Hwang’s positions in ViacomCBS, Tencent and Discovery were so large that their falling stocks had a seismic effect on the market.
The collapse of Archegos cost shareholders $100 billion and left major banks with $10 billion in losses.
Bill Hwang and his CFO, Patrick Halligan, are facing racketeering conspiracy and securities fraud charges.
Prosecutors allege that Archegos used financial instruments called ‘total return swaps’ to gain exposure to stocks without owning them while lying to banks about its massive positions.
If found guilty, Hwang and Halligan could face up to 20 years in prison under federal sentencing guidelines.
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The author makes several arguments in this article, some of which contain fallacies. The primary fallacy present in the article is an appeal to authority. The author quotes multiple experts and uses their opinions as evidence to support her own argument about the significance of the Archegos case and its implications for Wall Street. However, while these experts' opinions are valid and relevant, they do not necessarily make the author's arguments true or accurate. Additionally, there are instances of inflammatory rhetoric used to describe Bill Hwang and his actions, such as
The Archegos episode is one of the more significant white-collar cases to emerge since the financial crisis.
Before Archegos, market watchers knew unregulated family offices were a problem, and they knew that swaps going unreported was a problem. But I don’t think anyone put two and two together to say you could just use these two and light a dumpster on fire.
Even if Wang is convicted, he said, there’s another culprit in the saga getting off easy: the taxpayer-backed banks that enabled the trading in the first place.
