# Who is Bill Hwang?
Archegos was founded by former equity analyst Bill Hwang, a South Korean-American that started his Wall Street career in the 1990s.
He first got accepted by a firm called, **"Hyandai Securities LTD"**, where he worked as a sales trader.
After leaving that firm, he worked with hedge fund manager Julian Robertson's private fund for wealthy investors, **"Tiger Management LLC"** as a securities trader, where he then decided to launch his own fund Tiger Asia Management in the early 2000s.
In 2012, he renamed Tiger Asia as Archegos Capital and made it a family office. The fund went on to become of the largest investors in Asian financial markets.
He preceded to operate **Archagoes Capital Management** based in New York City, New York, U.S.A.
This lasted **8 years**. This went from **2013 - 2021.**
On March 26, 2021, Archegos defaulted on margin calls from several global investment banks, including Credit Suisse and Nomura Holdings, as well as Goldman Sachs and Morgan Stanley.
And on April 27, 2022, Hwang was indicted and arrested on federal charges of fraud and racketeering.
[Bill Hwang - CEO Of Archegos Capital Management](https://preview.redd.it/q9vfox929x191.jpg?width=800&format=pjpg&auto=webp&s=9f8c74dee35442079f8338165893a6e35898126a)
# Four Charged in Connection with Multibillion-Dollar Collapse of Archegos Capital Management
Department of Justice was charged with conspiracy, racketeering, securities fraud, and wire fraud offenses.
# March 2021 Losses
On March 26, 2021, banks offering prime brokerage services to Archegos started to liquidate billions of dollars' worth of various stocks after it had failed to meet a margin call. The stocks were reportedly tied to the total return swaps held by Archegos. This sale was reported to be the cause of a 27% plunge in share price of Viacom, CBS and a similar fall in the price of Discovery, Inc.
On March 29, the share price of Credit Suisse was down by 14%, while Nomura Holdings shares declined by 16%. A press release from Credit Suisse said that "the loss resulting from this exit could be highly significant and material to our first quarter results."
According to *The* *Wall Street Journal*, Goldman Sachs and Morgan Stanley were able to limit their losses relating to Archegos by acting more quickly than Credit Suisse and Nomura Holdings. Other banks, such as Deutsche Bank, were able to close their substantial positions quickly and avoid any losses.
# Loses Ranked By Bank
|Bank|Loss \~ \[ USD \]|
|:-|:-|
|Credit Suisse|$5,500,000,000|
|Nomura|$2,850,000,000|
|Morgan Stanley|$911,000,000|
|UBS|$744,000,000|
|Mitsubishi UFJ Financial|$300,000,000|
[\\"How To Lose $20,000,000,000 In Two Days\\" - Bloomberg](https://preview.redd.it/gnwlacxnqx191.jpg?width=1200&format=pjpg&auto=webp&s=4286765a7f396742aba924e1d297321741c5cb9e)
**Source Link:** [** https://www.youtube.com/watch?v=MhMhg97fmzE&ab\_channel=BloombergQuicktake%3AOriginals**](https://www.youtube.com/watch?v=MhMhg97fmzE&ab_channel=BloombergQuicktake%3AOriginals)
[\\"How Banks Helped Hwang Make Leverage Bets\\" - CNBC](https://preview.redd.it/86d65y6uqx191.jpg?width=1280&format=pjpg&auto=webp&s=5de8cb74ff1c3a5a47e2403ad74a0f5b0f3cc6eb)
**Source Link:** [** https://www.youtube.com/watch?v=glaVAH\_D5HU**](https://www.youtube.com/watch?v=glaVAH_D5HU)
[\\"The $100,000,000,000 Crime\\" - Wall Street Millennial](https://preview.redd.it/go9t7f42rx191.jpg?width=1280&format=pjpg&auto=webp&s=3683f7208b171514719dfc08dc0d14d0763a24ba)
**Source Link:** [** https://www.youtube.com/watch?v=kDqVqqFwx48&ab\_channel=WallStreetMillennial**](https://www.youtube.com/watch?v=kDqVqqFwx48&ab_channel=WallStreetMillennial)
[Bill Hwang Arrested](https://preview.redd.it/6kwfmodarx191.jpg?width=1280&format=pjpg&auto=webp&s=2dfac60af1a57925347d245764bfb48468736425)
**Source Link:** [** https://www.youtube.com/watch?v=S\_ikPX\_SiIE**](https://www.youtube.com/watch?v=S_ikPX_SiIE)
[\\"He Destroyed $20,000,000,000 In 2 Days\\" - ColdFusion](https://preview.redd.it/k31qj2t8vx191.jpg?width=1280&format=pjpg&auto=webp&s=454ecd62cea377c6e6d01383c9bbc8a444111044)
**Source Link:** [** https://www.youtube.com/watch?v=NtP3xT53dkU&ab\_channel=ColdFusion**](https://www.youtube.com/watch?v=NtP3xT53dkU&ab_channel=ColdFusion)
[Archegos Founder Hwang Criminally Charged](https://preview.redd.it/0iv3hwyrvx191.jpg?width=2400&format=pjpg&auto=webp&s=7663358e491e6868b743b62358a9acc800edc68d)
**Source Link:** [** https://www.youtube.com/watch?v=uZBVK0RAiw8&ab\_channel=BloombergMarketsandFinance**](https://www.youtube.com/watch?v=uZBVK0RAiw8&ab_channel=BloombergMarketsandFinance)
# Credit Suisse Fires Risk Management Executives After Archegos Capital Management Ends In The Loss Of $20,000,000,000 USD
[Credit Suisse Takes](https://preview.redd.it/ecd2c8r5wx191.jpg?width=1600&format=pjpg&auto=webp&s=e634441623092937097b20970ed7f72e5e1be2d2)
Heads have rolled at Credit Suisse after the investment bank suffered massive losses in the aftermath of the blowout of US hedge fund Archegos Capital Management last week.
The bank said two top executives are leaving it. Those fired are chief risk officer Lara Warner and its investment banking chief Brian Chin. The bank also cut executive bonuses after suffering major losses.
Credit Suisse, Switzerland's No. 2 bank, was among the last to take action before Archegos, a family-owned hedge fund, imploded following a billion-dollar margin call. Credit Suisse was forced to dump more than $2 billion worth of stock to seal its exposure to the investment fund controlled by Bill Hwang.
# Credit Suisse Launches Probe
Credit Suisse also launched an investigation into the Archegos losses. Credit Suisse shares rose 1.26 percent after the news of the drastic actions broke.
**"The significant loss in our prime services business relating to the failure of a US-based hedge fund is unacceptable."**
In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders," Credit Suisse's chief executive Thomas Gottstein said in a statement.
In the immediate aftermath of the folding up of Archegos, analysts had assessed that Credit Suisse would suffer total losses around **$5 billion**.
On Tuesday, the investment banking giant said it is facing up to a **$5,500,000,000** loss from Archegos.
The crisis unfolded last week when Archegos engaged in the fire sale of about $20 billion of assets after it defaulted on a margin call by Credit Suisse and others. With the value of securities in the margin account of Archegos dropping substantially due to bets that failed, the fund was forced to sell assets in a fire sale, which then created a wave of panic that resembled the Lehman Brothers crisis in 2008. The fire sale saw assets worth about $20 billion, mainly US and Chinese stocks, being sold.
Major investment banks like Deutsche Bank, UBS, Morgan Stanley, Goldman Sachs etc have been hit by the liquidation of Archegos but they avoided or limited the losses by cutting the exposure to Archegos assets in time.
Credit Suisse, which said it was expecting a $960 million loss for the first quarter, said it has cancelled a proposal for both short and long-term bonus awards for executives.
