Allianz Hedge Fund Implosion Results in $4.2 Billion Charge
- Firm poised to settle with investors of Structured Alpha Funds
- Insurance giant also in talks with Justice Department and SEC
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The price tag for one of the biggest trading debacles during the pandemic-fueled market meltdown of early 2020 is beginning to emerge.
Allianz SE, facing multiple lawsuits and regulatory probes tied to the collapse that year of its Florida-based hedge funds, took an unprecedented, 3.7 billion-euro ($4.2 billion) charge to cover a settlement reached Friday morning with the vast majority of investors in the funds.