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U.S. SEC investigating Archegos for potential market manipulation

© Reuters.

(Reuters) – The U.S. Securities and Exchange Commission has begun an investigation into Archegos Capital Management. This is the family office that Bill Hwang runs and which defaulted on its margin calls in the earlier part of the year. Bloomberg News reported Friday that the probe was being conducted by Bloomberg News, citing sources familiar with the matter.

According to the report, the securities regulator is investigating the trading activities of the company, and whether or not it conceals the amount of its stakes in public companies.

According to the report, authorities are looking at whether Archegos has bought multiple stakes within the same company across different banks in order to avoid public disclosure rules.

Archegos couldn’t be reached immediately for comment. The spokesperson of the SEC did not respond to our request for comment.

Some global banks suffered losses in excess of $10 billion due to the March collapse of the investment bank. Credit Suisse Group AG. (SIX:), Nomura Holdings (NYSE:) Inc Morgan Stanley This is the most severe hit.

Following the Archegos crisis, calls were made for tighter regulation of family office investment funds. SEC Chair Gary Gensler, who is also the Chairman of the Commission, told Congress that new trading rules are being considered to fix the Archegos problems.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.