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Archegos’s Banks Facing DOJ Antitrust Probe Into Collapse

  • Investigators are seeking information from Hwang’s top lenders
  • Banks had planned to coordinate an orderly unwind of Archegos
Credit Suisse AG HQ as CEO Faces Anger on Archegos Mess
Photographer: Stefan Wermuth/Bloomberg

U.S. investigators who focus on corporate collusion are examining how global banks handled multibillion-dollar trades with Archegos Capital Management that sent stocks into a spiral and burned other shareholders.

The Justice Department’s antitrust division is handling at least part of the probe into the collapse of Bill Hwang’s firm after lenders rushed to liquidate souring positions in March, according to people familiar with the matter. The debacle also erased much of the billionaire owner’s fortune and saddled banks with more than $10 billion in losses.