Archegos may wind down as banks seek to recoup billions in losses, report says
Archegosis preparing for insolvency as banks seek to recoup losses suffered during the meltdown, the Financial Times reported Wednesday.
- The family office has reportedly hired restructuring advisers to tackle financial and operational obstacles.
- Some of the banks are drafting "letters of demand" in which they are requesting repayment from Archegos before filing legal claims.
According to the report,
Credit Suisse, Nomura, Morgan Stanley, UBS, MUFG, and Mizuho all lost billions each after Bill Hwang's family office failed to meet margin calls on highly levered positions in a handful of stocks.
As a result, some of the banks are drafting "letters of demand" to the firm requesting repayment before filing legal claims, according to the Financial Times.
On Wednesday, UBS Group Chairman Axel Weber apologized for the loss the bank suffered amid the Archegos fiasco in an interview with Bloomberg TV.
Weber blamed the episode on a lack of oversight of family offices, which do not have to disclose as much information about investments to regulators compared to other asset managers, such as hedge funds.
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