All articles tagged with #archegos
Sung Kook "Bill" Hwang, founder of Archegos Capital Management, received an 18-year prison sentence for securities fraud and market manipulation, which led to significant financial losses for major banks and the collapse of his firm. The scheme expanded Archegos's portfolio from $1.5 billion to $35 billion in a year, using extensive borrowing to make large investments in companies like ViacomCBS and Tencent.
Bill Hwang, founder of Archegos Capital, has been sentenced to 18 years in prison for orchestrating a massive market manipulation scheme that resulted in over $10 billion in losses for major banks. Hwang's secretive trading strategies led to a sudden market sell-off in March 2021, impacting global equity markets and prompting banks to revamp their due diligence processes. Despite his charitable work and claims of financial loss, the court deemed his actions warranted severe punishment.
Bill Hwang, founder of Archegos Capital Management, faces sentencing for a massive fraud that cost banks over $10 billion. Convicted on charges including wire and securities fraud, prosecutors seek a 21-year prison term and $12.35 billion forfeiture. Hwang's defense argues for no jail time, citing low recidivism risk and his charitable work. The collapse of Archegos in 2021 led to significant financial losses for banks like Credit Suisse and Nomura. Hwang's co-defendant, Patrick Halligan, will be sentenced in January.
Bill Hwang, founder of Archegos Capital, claims he cannot pay the nearly $10 billion in restitution sought by prosecutors due to his reduced net worth of $55.3 million. Hwang's legal team argues that the restitution demand is unjustified and suggests that Wall Street banks seek compensation from the U.S. government, which is also pursuing a $12.4 billion forfeiture. Hwang, convicted of fraud, faces a potential 21-year prison sentence for deceiving banks and causing significant financial losses.
UBS is facing $387 million in fines for the "misconduct" of Credit Suisse in its risk management of Archegos Capital Management, an investment fund that collapsed in 2021. The Federal Reserve stated that Credit Suisse practiced "unsafe and unsound" credit risk management practices. UBS and Credit Suisse have been ordered to strengthen oversight of their US operations and senior management. The collapse of Archegos resulted in a $5.5 billion loss for Credit Suisse and the departure of two top executives. UBS completed an emergency takeover of Credit Suisse earlier this year to avoid an international banking crisis.
Credit Suisse has been fined $388 million over its involvement in the collapse of Archegos Capital Management, a family office that defaulted on margin calls in March 2021. The fine was imposed by the Swiss financial regulator, FINMA, which found that Credit Suisse had failed to adequately manage risks and had breached multiple regulations. The collapse of Archegos resulted in significant losses for several banks, highlighting the risks associated with excessive leverage in the financial system.
UBS is expected to face a financial hit of hundreds of millions of dollars due to Credit Suisse's Archegos failings. The losses are related to UBS's role as a prime broker for Archegos, which collapsed in March after failing to meet margin calls. Credit Suisse has already reported losses of $4.7bn due to the scandal.