The U.S. Department of Justice has begun an investigation on the collapse of Bill Hwang’s Archegos Capital Management, which cost large global banks more than $10 billion in losses.
To this end, federal prosecutors in Manhattan have sent requests for information to banks that had worked with the investment firm, said sources familiar with the matter at hand.
Earlier this year in March, Archegos, a family office run by ex-Tiger Asia manager Bill Hwang, defaulted on margin calls, leaving large global banks with heavy losses after a fire sale of shares, which were meant to act as collateral.
As a result of its default, Credit Suisse lost more than $5 billion, while Japan’s Nomura lost around $3 billion. Goldman Sachs, which had acted as brokers for Archegos, suffered lower losses.
The U.S. attorney’s office in Manhattan declined comment.
Archegos could not be reached for comments.