The U.S. Department of Justice is investigating the collapse of family office Archegos Capital Management that led global banks to shoulder more than $10 billion of losses.
Manhattan-based federal prosecutors have sent requests to several banks for related Archegos-related information, according to a «Bloomberg» report citing unnamed sources.
No banks and entities were named nor specific violations.
Expanded Probe
The DoJ’s is the latest to probe the fall of Bill Hwang’s family office and the related lenders.
In late March, the Securities and Exchange Commission reportedly launched a preliminary investigation into Hwang in March while exploring how to increase the transparency of derivatives used that led to the Archegos collapse. Also in the U.S., Federal Reserve chairman Jerome Powell said in April that the American central bank was reviewing the risk management breakdowns at some of the banks involved.
And in the U.K., the Prudential Regulation Authority is reportedly asking firms including Credit Suisse, Nomura and UBS to hand over related lending information while coordinating with watchdogs in the U.S. Switzerland and Japan.
