Was the Archegos implosion illegal?

阿彻戈斯崩塌是否违法?

Behind the Money

2024-05-08

23 分钟
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Three years ago, chaos struck Wall Street. Companies saw their share prices tumble, seemingly out of nowhere. Major banks lost billions of dollars in the fallout. Eventually, that chaos was linked to a family office, Archegos Capital Management, and its founder Bill Hwang.  This week, Hwang heads to trial in New York, where he faces charges including racketeering, and securities and wire fraud. The FT’s US legal correspondent Joe Miller examines the “novel” case prosecutors plan to pursue.   Clips from CNBC, Fox Business - - - - - - - - - - - - - - - - - - - - - - - - - -  For further reading: ‘To what end?’: the murky question of Bill Hwang’s motive in Archegos trial Archegos founder’s charity was financial ‘escape pod’, suit alleges Hedge funds and brokers take aim at post-Archegos trading reforms - - - - - - - - - - - - - - - - - - - - - - - - - -  On X, follow Joe Miller (@JoeMillerJr) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more. Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.
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  • It's known as one of the most spectacular collapses in modern financial history.

  • So it's March 2021.

  • It's in the middle of the Covid pandemic.

  • And major stocks in seemingly unrelated companies are dropping precipitously and for no apparent reason.

  • BFT's legal correspondent Joe Miller says this all begins with the media company ViacomCBS.

  • And no one watching the market and seeing these really sharp moves understands why it's happening.

  • It's all a great mystery.

  • And then, like dominoes, more firms shares start tanking.

  • Companies like Discovery, Tencent and Baidu.

  • Tens of billions of dollars worth of market value is being wiped off these companies.

  • And there didn't seem to be any unifying theory as to why these stocks would all be cratering at the same time.

  • And it's not just publicly traded companies.

  • Within weeks, major investment banks around the world are also thrown into crisis mode.