The Securities and Exchange Commission is investigating Arcgos Capital Management for market manipulation that may have happened earlier this March, Businesshala reported on the now-defunct Family Office on Debt Investments. informed of On Friday, regulators are doubling down on monitoring risky investments after global markets rocked and a $30 billion jump in sudden losses.
Since launching an investigation into the firm in March, the SEC has looked into Arcgos’ business activity and whether it has concealed the size of its investments in public companies to avoid regulatory disclosures, Businesshala reported, citing unnamed sources familiar with the matter. Told happened.
According to the report, former hedge fund trader Bill Hwang, the founder of Arcagos, has not been charged with wrongdoing, stating that the regulatory review is in the early stages and may not lead to enforcement action.
first hwang Settled Along with the SEC in a 2012 insider trading and market manipulation case, and his former firm, Tiger Asia Management pleaded guilty to the charges.
Hwang and representatives for the SEC did not immediately respond to requests for comment.
Arcgos defaulted on highly leveraged margin calls in late March, triggering a fire sale of nearly $30 billion in shares including ViacomBS, Baidu, Tencent Music Entertainment and Discovery Communications, as banks rushed to open their positions. . Credit Suisse and Nomura—two brokers of the firm—deployment of The default resulted in losses of a staggering $5.5 billion and $2.3 billion, respectively, while Goldman Sachs and Morgan Stanley were also forced to liquidate short positions held for Arcagos. Meanwhile, shares of ViacomCBS and Discovery Communications are still down about 60% since the turmoil, reflecting the more than $40 billion in market value that’s been wiped out for nearly seven months.
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Regulatory scrutiny over Family Office reporting requirements has piled up after the sudden collapse of Archegos. Arcgos made almost no financial disclosure for its status as a family office, despite billions of dollars of public-company investments that are not subject to SEC reporting requirements. Earlier this month, SEC Chairman Gary Gensler teased that the agency would start mandatory At least some disclosures in an effort to prevent excessive market risk.
SEC is probing ArcGo for potential market manipulation (Businesshala)
The Firm Behind the $30 Billion Firesale Shaking Financial Markets Said Almost Nothing (Businesshala)