Business

Banks involved in Archegos meltdown face DOJ probe

U.S. investigators who focus on corporate collusion are examining how global banks handled multibillion-dollar trades with Bill Hwang’s Archegos Capital Management, Bloomberg Law reported on Thursday.

At least part of the probe is being handled by the U.S. Department of Justice’s (DOJ) antitrust division, the report said, citing people familiar with the matter.

Archegos, a family office run by former Tiger Asia manager Hwang, defaulted on margin calls in March, leaving banks nursing heavy losses and sparking a fire sale of shares including ViacomCBS (VIAC.O) and Discovery Inc (DISCA.O).

The blowup cost big global banks including Credit Suisse (CSGN.S), Nomura Holdings (8604.T), Morgan Stanley (MS.N) and Deutsche Bank (DBKGn.DE) more than $10 billion in losses.