U.S. Senate Banking chair presses Wall Street banks on Archegos ties

Sumary of U.S. Senate Banking chair presses Wall Street banks on Archegos ties:

• Senate Banking Committee has written to several large banks, including Credit Suisse and Japan Nomura, asking them for information on their relationship with New York-based Archegos Capital Management after the fund imploded last month..
• Senator Sherrod Brown asked the bank chiefs to detail how their institutions came to do business with Archegos, a family office run by ex-Tiger Asia manager Bill Hwang..
• Archegos’ soured leveraged bets on media stocks have left the fund and banks that financed its trades nursing billions of dollars in losses..
• The letters signal that the fallout from the Archegos meltdown is spreading in Washington, where policymakers are already mulling new rules on nonbanks and how traditional banks may be exposed to their risks..
• “I am troubled, but not surprised, by the news reports that Archegos entered into risky derivatives transactions facilitated by major investment banks,”…

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From Reuters - 09/04/2021