Sala Metro
  • Home
  • US
  • World
  • News
    • All
    • Bussiness
    • Politics
    • Science

    Leon Black accused of sexual harassment

    Elon Musk’s Neuralink shows monkey playing ‘mind Pong’

    About 500 challenged ballots at stake in Amazon union vote: report

    Massive cache of LinkedIn user data leaked online

    Massive cache of LinkedIn user data leaked online

    Kim Kardashian’s Skims shapewear reportedly valued at $1.6B

    Citigroup urges longer freeze over botched Revlon payment

    Elon Musk’s statement on Tesla production raises questions

    Trending Tags

    • Lifestyle
      • All
      • Fashion
      • Food
      • Health
      • Travel

      Art Therapy Has ‘Clear Effect’ On Severe Depression, Research Finds

      What It Means To Have A Creative Personality

      7 Odd Things That Happen To Your Body When It’s Cold Outside

      How Neuroplasticity Can Help You Get Rid Of Your Bad Habits

      Watch: 7 Tips On How To Start Working Out

      18 Realistic Ways To Become A Happier, More Chill Person In 2018

      What I’ve Learned From A Year Without Alcohol

      Trending Tags

      • Entertainment
        • All
        • Gaming
        • Movie
        • Music

        Amy Schumer Makes It Official With Her New Chef Boyfriend

        George Clooney Talks About His Love For Amal, And It’s Devastatingly Romantic

        ‘Walking Dead’ Star Danai Gurira Was ‘Absolutely Devastated’ After That Carl Reveal

        ‘Black Panther’ Lives Up To The Hype – And Then Some: HuffPost Verdict

        Amy Poehler And ‘Parks And Recreation’ Cast Reunite For Galentine’s Day

        Kim Cattrall Shows Cynthia Nixon Some Love After Slamming Sarah Jessica Parker

        Amy Schumer Says “Yes”, Marries Chef Chris Fischer After A Few Months Of Dating

        Trending Tags

        • Tech
          • All
          • Apps
          • Gadget
          • Mobile

          Alibaba Faces $2.8 Billion Fine From Chinese Regulators

          Inside the Fight for the Future of The Wall Street Journal

          Google Won. So Did Tech.

          Amazon Union Vote: Labor Loss May Bring Shift in Strategy

          Vaccine Passports: What Are They, and Who Might Need One?

          5 Tips for Smartphone Voice Tools

          Follow Live Results as Votes Are Counted in Amazon Unionization Bid

          Trending Tags

          • Sports
          Friday, April 16, 2021
          No Result
          View All Result
          • Home
          • US
          • World
          • News
            • All
            • Bussiness
            • Politics
            • Science

            Leon Black accused of sexual harassment

            Elon Musk’s Neuralink shows monkey playing ‘mind Pong’

            About 500 challenged ballots at stake in Amazon union vote: report

            Massive cache of LinkedIn user data leaked online

            Massive cache of LinkedIn user data leaked online

            Kim Kardashian’s Skims shapewear reportedly valued at $1.6B

            Citigroup urges longer freeze over botched Revlon payment

            Elon Musk’s statement on Tesla production raises questions

            Trending Tags

            • Lifestyle
              • All
              • Fashion
              • Food
              • Health
              • Travel

              Art Therapy Has ‘Clear Effect’ On Severe Depression, Research Finds

              What It Means To Have A Creative Personality

              7 Odd Things That Happen To Your Body When It’s Cold Outside

              How Neuroplasticity Can Help You Get Rid Of Your Bad Habits

              Watch: 7 Tips On How To Start Working Out

              18 Realistic Ways To Become A Happier, More Chill Person In 2018

              What I’ve Learned From A Year Without Alcohol

              Trending Tags

              • Entertainment
                • All
                • Gaming
                • Movie
                • Music

                Amy Schumer Makes It Official With Her New Chef Boyfriend

                George Clooney Talks About His Love For Amal, And It’s Devastatingly Romantic

                ‘Walking Dead’ Star Danai Gurira Was ‘Absolutely Devastated’ After That Carl Reveal

                ‘Black Panther’ Lives Up To The Hype – And Then Some: HuffPost Verdict

                Amy Poehler And ‘Parks And Recreation’ Cast Reunite For Galentine’s Day

                Kim Cattrall Shows Cynthia Nixon Some Love After Slamming Sarah Jessica Parker

                Amy Schumer Says “Yes”, Marries Chef Chris Fischer After A Few Months Of Dating

                Trending Tags

                • Tech
                  • All
                  • Apps
                  • Gadget
                  • Mobile

                  Alibaba Faces $2.8 Billion Fine From Chinese Regulators

                  Inside the Fight for the Future of The Wall Street Journal

                  Google Won. So Did Tech.

                  Amazon Union Vote: Labor Loss May Bring Shift in Strategy

                  Vaccine Passports: What Are They, and Who Might Need One?

                  5 Tips for Smartphone Voice Tools

                  Follow Live Results as Votes Are Counted in Amazon Unionization Bid

                  Trending Tags

                  • Sports
                  No Result
                  View All Result
                  Sala Metro
                  No Result
                  View All Result
                  Home News Bussiness

                  Bill Hwang of Archegos at center of massive margin call

                  admin by admin
                  March 31, 2021
                  in Bussiness
                  0
                  0
                  SHARES
                  8
                  VIEWS
                  Share on FacebookShare on Twitter

                  [ad_1]

                  Despite being a rarefied “Tiger cub,” Bill Hwang was not well known on Wall Street until he blew up in what might be the biggest margin call of all time, causing billions in losses.

                  Hwang, a former protege of noted Tiger Management founder Julian Robertson, ran family office Archegos Capital Management, which was so under-the-radar that he wasn’t even initially spotted as the cause of seismic shifts in trading that sent shares of Discovery down 21 percent on Friday.

                  Hwang has since emerged as the man at the center of a multibillion trading fiasco that is now expected to result in upward of $6 billion in losses for some of his trading partners, including Nomura and Credit Suisse.

                  Wall Streeters are admittedly stunned by the speed of the crash and the size of the damage left behind even as they brace for a potential battle with lawmakers over regulation of secretive family offices like the one run by Hwang.

                  “I’ve never seen anything like this — how quiet it was, how concentrated, and how fast it disappeared,” Mike Novogratz, a career macro investor and former partner at Goldman Sachs told Bloomberg News. “This has to be one of the single greatest losses of personal wealth in history.”

                  “You have to wonder who else is out there with one of these invisible fortunes,” Novogratz added. “The psychology of all that leverage with no risk management, it’s almost nihilism.”

                  Because Archegos is a family office and not a regulated bank or hedge fund, the details of its crash remain a mystery. What is known is that Hwang established Archegos after he shuttered his hedge funds — Tiger Asia Management and Tiger Asia Partners — following an SEC probe in 2012 alleging insider trading.

                  The firm then reportedly used derivatives contracts with brokers to supercharge its trades, structuring them in such a way that Archegos’s positions were placed on banks’ balance sheets.

                  Such contracts, which  don’t need to be disclosed, reportedly allowed Hwang to turn his net worth, estimated at around $10 billion, into trades worth an estimated $50 billion or more.

                  At some point last week the trades went awry, forcing his trading partners to start selling his positions to pay off his debts to them. It was a margin call turned bad.

                  Archegos finally broke it’s silence on Tuesday, saying: “This is a challenging time for the family office of Archegos Capital Management, our partners and employees. All plans are being discussed as Mr. Hwang and the team determine the best path forward.”

                  Sen. Elizabeth Warren, however, is already calling for greater scrutiny.

                  “Archegos’ meltdown had all the makings of a dangerous situation — largely unregulated hedge fund, opaque derivatives, trading in private dark pools, high leverage, and a trader who wriggled out of the SEC’s enforcement,” Warren tweeted Tuesday.

                  888 7th Ave, a building that reportedly houses Archegos Capital.
                  Archegos finally broke it’s silence on Tuesday, saying it was a “challenging time.”
                  REUTERS

                  “Regulators need to rely on more than luck to fend off risks to the financial system: we need transparency and strong oversight to ensure that the next hedge fund blowup doesn’t take the economy down with it,” she said.

                  Analysts have pegged Credit Suisse’s losses tied to Archegos, as well as the smaller collapse of financial startup Greensill from earlier this month, at $4 billion, threatening a year of profits tied to one month’s trading.  Nomura has pegged its losses at $2 billion.

                  Wells Fargo, by contrast, said it didn’t experience any losses, while Goldman Sachs has reportedly told investors that its losses will be immaterial.

                  Despite the chaos, Hwang’s former boss, founder of esteemed hedge fund Tiger Management, suggested he’s still rooting for the guy.

                  “I’m just very sad about it,” Robertson, 88, told Bloomberg in a Monday interview. “I’m a great fan of Bill, and it could probably happen to anyone. But I’m sorry it happened to Bill.”



                  [ad_2]

                  Source link

                  Previous Post

                  Justin Fields wows with Jets leaning Zach Wilson in NFL Draft

                  Next Post

                  Pete Alonso tells Mets to pay Francisco Lindor $400 million

                  Next Post
                  Pete Alonso tells Mets to pay Francisco Lindor $400 million

                  Pete Alonso tells Mets to pay Francisco Lindor $400 million

                  Remains of Kansas priest who died in Korean War identified

                  Remains of Kansas priest who died in Korean War identified

                  March 6, 2021
                  March Madness 2021 odds, predictions: Gonzaga will roll

                  March Madness 2021 odds, predictions: Gonzaga will roll

                  March 28, 2021
                  UFC 259: Blachowicz vs Adesanya – All you need to know, where to watch

                  UFC 259: Blachowicz vs Adesanya – All you need to know, where to watch

                  March 7, 2021
                  Tom Bower to write ‘explosive’ Meghan Markle biography

                  Tom Bower to write ‘explosive’ Meghan Markle biography

                  March 26, 2021

                  If You Care About Privacy, It’s Time to Try a New Web Browser

                  April 1, 2021

                  Banged-up James Harden carries Nets to win over Trail Blazers

                  March 24, 2021

                  Bryson DeChambeau will drive himself mad chasing perfection

                  March 15, 2021

                  Duke University Alumni Kyrie Irving, Jayson Tatum, and Zion Williamson Create History at NBA All-Star Game 2021

                  March 8, 2021

                  Police Provide Update on Southern California Office Shooting

                  April 2, 2021

                  USA Today ‘race and inclusion’ editor fired for Boulder shooting tweet

                  March 27, 2021

                  9-year-old Mexican girl drowns crossing Rio Grande into US

                  March 26, 2021

                  Thousands of migrants crossing US border overwhelm government agents

                  March 6, 2021

                  Amazon cheating workers out of 30-minute lunches

                  March 30, 2021

                  Canadian Mixed Doubles Curling Championship 2021 Semifinal & Final Live free Stream: How To Watch Results, schedule and TV channel

                  March 26, 2021

                  LIVE UFC 259: Jan Błachowicz vs Israel Adesanya Reddit MMA Streams 6 Mar 2021 | MMA Live Stream or UFC Reddit Streams Schedule 2021

                  March 7, 2021

                  Stimulus check argument prompted quadruple murder: family

                  March 16, 2021
                  Sala Metro

                  SalaMetro strives to serve as a dominant source of news articles that involves information acquired from various corners of the world. We ensure that our readers get access to non-partial journalism, reliable information, and engaging content. We are a team of writers, researchers, editors, and journalists that craft news articles from various niches such as business, popular headlines from the US and World, Technology, Entertainment and sports.

                  About Us

                  • About
                  • Team Members
                  • Contact
                  • Cookie Policy
                  • Editorial Policy
                  • Privacy Policy

                  After Snatching One Crown, Mrs. World Gives Up Her Own

                  April 11, 2021

                  Ashraf Ghani, Afghanistan’s President, Has Little Sway Over Its Future

                  April 11, 2021

                  ©️ 2021 SalaMetro. Powered by BritMedia360

                  No Result
                  View All Result
                  • Home
                  • Entertainment
                    • Gaming
                    • Movie
                    • Music
                    • Sports
                  • Lifestyle
                    • Fashion
                    • Food
                    • Travel
                    • Health
                  • News
                    • Bussiness
                    • Politics
                    • Science
                  • Tech
                    • Apps
                    • Gadget
                    • Mobile

                  ©️ 2021 SalaMetro. Powered by BritMedia360