Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content

Business

SEC opens investigation into Bill Hwang after Archegos meltdown -Bloomberg News

2 minute read

888 7th Ave, a building that reportedly houses Archegos Capital is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., March 29, 2021. REUTERS/Carlo Allegri

The U.S. Securities and Exchange Commission (SEC) has started a preliminary investigation into Bill Hwang following the collapse of New York-based Archegos Capital Management, Bloomberg News reported on Wednesday, citing a person familiar with the matter.

The probe is a routine procedure, which the SEC launches after a major market blowup, and may not lead to any allegations of wrongdoing, according to the report. (https://bloom.bg/3mbW2Em)

A spokesperson from the SEC declined to comment. Archegos could not be immediately reached for comment

Archegos Capital Management, a $10 billion single-family office run by former Tiger Asia manager Hwang, defaulted on margin calls by its banks, triggering a turmoil on Wall Street.

Archegos' soured leveraged equity bets have left big banks that financed its trades nursing at least $6 billion in losses, while drawing scrutiny from watchdogs. read more

U.S. and British financial regulators have been in discussions with market players including broker-dealers as they try to determine the fallout from Archegos' default, a source briefed on the talks told Reuters on Tuesday.

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters