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Bill Hwang Seeks Probe of Morgan Stanley Over Short Squeeze

  • Archegos lost big after asking Pawan Passi for help with wager
  • The firm has asked authorities to review bank’s actions
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WATCH: A new chapter in the Bill Hwang saga. Source: Bloomberg
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Before Bill Hwang sent a slate of stocks on a manic climb last year, he had already started bleeding billions of dollars on a bearish bet after seeking Morgan Stanley’s help.

It’s an untold chapter that played out just before Hwang’s famously bullish trades came tumbling down in early 2021, wiping out his Archegos Capital Management and leading to criminal charges. Months before all of that, Archegos was trying to exit a wager against a Chinese online broker and sought help from Pawan Passi, the Morgan Stanley banker placed on leave as the US probes whether Wall Street is too loose-lipped when handling big trades.