SEC Investigating Archegos for Potential Market Manipulation
- Authorities are probing collapse of Bill Hwang’s family office
- Its implosion in March cost global banks more than $10 billion
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A U.S. investigation into the collapse of Bill Hwang’s Archegos Capital Management is examining whether the firm engaged in market manipulation.
The U.S. Securities and Exchange Commission is scrutinizing the firm’s trading activity, including whether it concealed the size of its bets on public companies, and recently served Archegos with a subpoena, according to people familiar with the matter. Authorities are reviewing whether Archegos bought multiple stakes in the same companies across several banks in an effort to avoid triggering public disclosure rules. In aggregate, Hwang’s positions were massive.