Alarms were blaring inside Wall Street’s corridors of power in the middle of last week, as executives realized they might be facing the biggest hedge fund blowup since Long-Term Capital Management in the 1990s.
Global investment banks, gathering in a hastily arranged call, needed a swift truce to deal with Bill Hwang’s Archegos Capital Management if they were to head off billions of dollars in losses for banks and a potential chain reaction across markets. Yet by Friday, it was everyone for themselves.
